Plus500 reports resilient Q3 performance amid market challenges

Shares in Plus500 (LSE: PLUS) surged by 7.4% to 1,404.00 pence each as the market opened, bolstered by the robust Q3 results.

During the three months ending in September, the company reported a 4.7% increase in revenue, reaching $168.1 million, compared to $160.6 million in the preceding quarter. However, this figure marked a 14% decrease from the third quarter of 2022, which saw revenue at $194.5 million.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) exhibited a similar pattern, rising by 9.7% to $80.3 million in Q3, up from $73.2 million in the second quarter. Nonetheless, this figure marked a notable 21% dip compared to $101.8 million during the same period the previous year.

Plus500’s EBITDA margin for Q3 stood at 48%, a modest improvement from the 46% margin in the preceding quarter but slightly lower than the 52% margin in the third quarter of the previous year.

In a forward-looking statement, Plus500 expressed optimism, anticipating that its full-year revenue and EBITDA would align with upgraded market expectations, set at $645 million and $300 million, respectively. In 2022, the company recorded revenue of $815.2 million and EBITDA of $453.8 million.

CEO David Zruia commented on the company’s performance, saying, “I am pleased to announce that Plus500 continued to perform well during the third quarter of 2023, driven by our focus on higher-value customer acquisition, geographic expansion, and product innovation, despite lower volatility and trading volumes across the global financial markets. The group continues to make good progress against its strategic plans with the expansion into the US, Japan, and the UAE markets.”

He also noted, “Our consistent good performance is enabled, supported, and progressed by our market-leading, proprietary technology, which is developed and maintained entirely by our highly experienced teams. As a diversified, global business with a clear and proven strategy, Plus500 is well positioned to continue delivering strong results and attractive returns to its shareholders.”