Plus500 expects decline in interim earnings and revenue

Plus500 (LSE: PLUS) announced on Monday that it expects a decline in revenue and earnings for the first half of 2023, primarily driven by lower trading volumes.

The company projects a 43% decrease in earnings before interest, tax, depreciation, and amortisation (EBITDA), with figures expected to drop to $174.1 million from $305.3 million in the previous year. Additionally, revenue is set to decline by 28% to $368.5 million from $511.4 million.

Despite these anticipated declines, Plus500 said its strong performance during the period, attributing it to effective navigation through challenging market conditions. Chief Executive Officer David Zruia highlighted the progress made in optimising growth opportunities in the United States and Japan, where the company continues to make significant investments to capitalize on future prospects. Plus500 also obtained a license in the United Arab Emirates earlier this year, demonstrating its commitment to diversifying its geographic footprint across high-growth markets.

Looking ahead, Plus500 expects its revenue and EBITDA for the full year of 2023 to be in line with current market expectations. Analysts project revenue of $609.0 million, reflecting a 27% decline from $832.6 million, and EBITDA of $267.1 million, representing a 41% decrease from $453.8 million.

Despite the anticipated declines in interim earnings and revenue, Plus500’s shares saw a 2.8% increase in early trading in London on Monday, suggesting a positive market response to the company’s outlook.