Israeli-based, but London-stock market listed Plus500 Ltd (LON:PLUS) today said it expects annual revenue and earnings to be “significantly ahead” of analysts’ estimates. The group plans to publish its preliminary results for FY 2023 on February 20, 2024.
In particular, the company expects to report full-year revenue at $725 million, down 13 percent from $832 million in 2021. In a trading update, the online trading platform provider revealed on Monday that this performance is supported by a strong level of customer income.
At the bottom line, the spread betting and CFDs broker told investors that its board now expects FY 2023 EBITDA to come in at $340 million. That compares to the $454 million it earned in 2022 and $387 million in 2021.
Throughout the year, Plus500 saw operational and strategic milestones, bringing its total number of global regulatory licenses to 13. Key developments included expanding its US futures business, launching a localized retail trading platform in Japan, and making progress in the UAE market following the earlier acquisition of a regulatory license.
Additionally, Plus500 has become a primary member of the Futures Industry Association (FIA) in the United States. The membership supports Plus500’s plans to expand its US business, positioning itself within the world’s leading trade organization for futures, options, and centrally cleared derivatives markets.
The move comes as Plus500 continues to execute its global expansion and product plans. The company integrated its US acquisitions and introduced ‘Plus500 Futures’ in the US market. In addition, Plus500 entered the Japanese market with a new trading platform tailored for local retail traders. The UAE market showed promising growth following the regulatory license granted by the Dubai Financial Services Authority (DFSA), and the company also secured a new regulatory license from the Securities Commission of the Bahamas in July 2023.
Since its foray into the US market in 2021 through acquiring Cunningham Commodities LLC, Plus500 has steadily strengthened its foothold in the American futures market.
In the US, the company has already made strides in developing its business-to-business (B2B) and business-to-consumer (B2C) offerings. As part of its operational model, Plus500 provides B2B market infrastructure services to institutional clients in the US futures market. These services leverage Plus500’s status as a full Clearing Firm Member of both the CME Group and the Minneapolis Grain Exchange (MGEX), including brokerage-execution and clearing services.
Financially, Plus500 maintained a robust balance sheet, with cash balances reaching $900 million as of December 31, 2023. In terms of shareholder returns, the broker announced returns of around $350 million, distributed between dividends and share buybacks.