Plus500 Raises FY21 Revenue Expectation amid Q3 Performance

Plus500, a London-listed forex and CFDs broker, provides a trading update on Monday, stating that it has ‘delivered further positive momentum’ in the performance in the third quarter of 2021. Thus, the company is now expecting higher FY2021 revenue and EBITDA than the current compiled analysts’ consensus forecasts.

According to the current consensus forecast, the broker is expected to generate $555.8 million in the entire FY21, along with an EBITDA of $277.9 million and an EBITDA margin of 50 percent. These figures were obtained based on the company’s H1 2021 results.

The heightened performance expectation from the broker’s part came following the Q3 performance, which the company will disclose on October 25 and was obtained ‘despite more stable market conditions when compared to recent quarters’.

“This positive momentum was highlighted by the consistent strength of Customer Income, a key underlying growth metric for Plus500, which has supported a strong revenue performance during the year to date,” the trading update added.

Plus500 generated $187.6 million in revenue in the first half of the ongoing financial year. Though the figures pulled back from the record the broker achieved during the same period of the prior year, it was significantly higher than FY21 H2.

Client Activity Surged

The broker further highlighted that its active customer base has grown significantly during the last few years which resulted from a significant investment in the Company’s marketing technology to drive attractive return-on-investment.

Plus500 also took some significant steps for its growth and business development. Last April, it decided to acquire US-based Cunningham Commodities, a regulated Futures Commission Merchant (FCM), along with the acquisition of the technology trading platform provider, Cunningham Trading Systems. That ensured the Israeli firm’s entry into the US market.

“The Company is continuing to make progress in accessing additional growth opportunities through further organic investment and by targeting potential bolt-on acquisitions,” the company added.

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