PLUS500 Reports 70% Growth in Earnings, Aided by Strong Revenues from Cryptocurrency Trading

CryptocurrenciesPLUS500 (LON: PLUS), UK’s #2 CFD broker, only behind industry leader IG Group Holding Plc has logged 70 percent jump in profit aided by cryptocurrency trading revenue. PLUS has reported its financial metrics for both full year and Q4 in which it posted 33 percent growth in revenue during the full year compared to 2016.

In the full year, the company reported $437.2 million of revenue compared to $327.9 million in 2016. The fourth quarter proved to be stellar for the brokerage house as it reported $132.3 million of revenue, a 14 percent increase over the previous quarter. In contrast, the company never reported a revenue quarter above $85 million before 2017.

The company earned $259.2 million in EBITDA in 2017, a 72 percent rise from 2016 figures at $151 million. Net Profit came in at $199.7 million, up 70% compared to 2016’s $117.2 million. The revenue from Cryptocurrency CFDs trading was roughly around 15 percent during the year. The platform was initially introduced in 2013, but recent volatility and surreal gains in values have attracted punters to bet on the asset class. 

The Israel based company has announced a dividend per share of $1.7 for 2017, almost double than previous year and a $7.5 million share buyback programme during the year representing a total outflow of 100 percent of net profit for 2017. 

PLUS500 has also able to sign up new customers during the year with 136 percent increase year-over-year, many of which are attracted by the cryptocurrency derivatives trading. The average cost per acquisition of new customers has also gone down drastically from $1,195 in 2016 to $474 during 2017.

In 2017, the group’s 76 percent revenue was contributed from European region and the group is diversifying geographically. The company has secured a license to operate in South Africa and a commodities broker license in Singapore. The company is also witnessing a record financial KPIs in the early weeks of Q1, 2018 indicating higher trading volumes and bottom line during 2018.

Asaf Elimelech, CEO of Plus500 said:

We are pleased to announce record annual results which have demonstrated the significant operational leverage inherent in our business model. Our continued focus on serving our customers’ trading needs through product innovation and technology leadership, combined with our successful marketing activity, has led to strong new customer sign-ups, reduced churn in the second half and increased customer activity.

We continue to have a highly flexible business model, a lean cost structure and geographically diversified revenues and operations that help mitigate the impact of regulatory changes on our financial performance. Overall, we anticipate that the industry will consolidate around a smaller number of larger participants, of which we believe Plus500 will be among the leaders.