In a regulatory filing, Plus500 Ltd. (LSE: PLUS) said it will kick off a fresh $110 million share buyback program. The plan is part of the $185.5 million in shareholder returns detailed in the company’s H1 2024 interim results.
The publicly-traded broker added that the move reflects the opportunities available to drive future growth, as well as its high cash generation.
Plus500 announced the additional shareholder returns are made up of $110 million in share buybacks and $75.5 million in dividends. This bump ups the total returns for FY 2024 to $360.5 million.
The new buyback program comes on the heels of a $100 million buyback completed earlier this year. As of June 30, 2024, Plus500 reported holding over $1 billion in cash on its balance sheet. Since its IPO in 2013, the company has returned $2.3 billion to shareholders, making it a standout on the FTSE All-Share index.
“The maximum number of shares the Company is entitled to repurchase under the Share Buyback Programme is up to 5,694,522 shares. This figure represents the total shares the Company was authorised to purchase pursuant to the authority granted by shareholders at the Company’s most recent Annual General Meeting held on 7 May 2024 less the number of shares that have already been repurchased pursuant to that authority,” the statement reads.
In 2023, the broker rolled out a generous shareholder return strategy, dishing out around $350 million in total. This sum was split between a share buyback initiative worth $257.5 million—highlighted by a $127.5 million share repurchase carried out on June 13—and dividends totaling $90 million.
Maintaining a balanced approach between funding growth in key channels and returning excess liquidity to shareholders, Plus500 said that it has updated its shareholder returns policy, keeping the current return of at least 50% of the net profit but only via share buybacks. This compares with the previous policy of returning the profit through dividends and share buyback programs, with at least 50% made by way of dividends.
The company reported revenues of $398.2 million for H1 2024, up 8% compared to $368.5 million in H1 2023. Q2 2024 revenues also showed growth, rising 14% to $182.6 million from $160.6 million in Q2 2023.
EBITDA for H1 2024 stood at $183.9 million, up 6% from $174.1 million in the same period last year. For Q2 2024, EBITDA increased by 11% to $81.3 million, compared to $73.2 million in Q2 2023. The EBITDA margin remained strong at 46%, slightly down from 47% in H1 2023.
Plus500’s earnings per share jumped 18% to $1.90, and its cash reserves hit a milestone of over $1 billion for the first time, which reflects the business’s strong financial footing.
