Plus500 Limited (LON:PLUS), a global multi-asset fintech group operating technology-based trading platforms, today announced its interim results for the six month period ended 30 June 2021.
Significant positive financial and operational momentum achieved in H1 2021, with performance ahead of pre-pandemic levels:
– Group revenue of $346.2m (H1 2020: $564.2m; H2 2020: $308.3m)
– EBITDA1 of $187.6m (H1 2020: $361.8m; H2 2020: $154.1m)
– 136,980 New Customers2 onboarded (H1 2020: 198,176; H2 2020: 96,552)
– Further increase in base of Active Customers3 to 333,940 (H1 2020: 328,409; H2 2020: 278,566)
Further attractive returns delivered to shareholders:
– $60.0m interim dividend declared today, representing $0.5921 per share
– New share buyback programme of $12.6m announced today
– $42.5m invested in two share buyback programmes completed during the period
– Enabled by continued strong operating cash conversion4 of 87%, with cash balances of $722.5m at the end of H1 2021 (H1 2020: $587.8m, H2 2020: $593.9m)
Entry into Futures and Options on Futures market in the US – a major growth opportunity for Plus500:
– Enabled through acquisition of Cunningham Commodities LLC. (“Cunningham”), a regulated Futures Commission Merchant, and Cunningham Trading Systems LLC. (“CTS”), a technology trading platform provider, completed in July 2021 and integration already underway
– Provides immediate access to the significantly growing, but under-penetrated, US retail trading market in futures and options on futures, with global addressable market estimated to be approximately $2 billion5
Significant milestone achieved through launch of new ‘Plus500 Invest’ share dealing platform in Europe:
– Available initially in selected geographies from July 2021, with further roll-out across Europe planned for remainder of H2 2021
– Presents important additional revenue opportunities and helps to drive customer retention through wider product choices for customers
Focus on continued transition into a global multi-asset fintech group:
– Supported by further investment in Plus500’s technology platform, including incremental R&D investment of approximately $50m over the next three years, including establishment of new R&D centre, to drive scale and innovation
– On-going focus on targeted bolt-on acquisitions to diversify product portfolio and expand geographic footprint
Further improvements in governance and risk management approach:
– High calibre new Chairman (Prof. Jacob A. Frenkel) and two new Non-Executive Directors (Ms. Sigalia Heifetz and Ms. Tami Gottlieb) appointed in H1 2021 to complement the existing skill set and expertise of the Board of Directors of the Company (the “Board”) and to further diversify its composition
– Implementation of focused targeted hedging to reduce market risk, as appropriate
Given the significant positive momentum achieved, the Board is increasingly confident about the outlook for Plus500:
– The Board expects revenue to be significantly ahead of current compiled analysts’ consensus forecasts6, with sustainable growth to be delivered over the medium to long term
Financial Highlights:
| H1 2021* | H1 2020* | Change % | H2 2020* | Change % | |
| Revenue | $346.2m | $564.2m | (39%) | $308.3m | 12% |
| EBITDA | $187.6m | $361.8m | (48%) | $154.1m | 22% |
| EBITDA Margin % | 54% | 64% | (16%) | 50% | 8% |
| Cash balance | $722.5m | $587.8m | 23% | $593.9m | 22% |
*Unaudited
Operational Highlights:
| H1 2021* | H1 2020* | Change % | H2 2020* | Change % | |
| Active Customers | 333,940 | 328,409 | 2% | 278,566 | 20% |
| New Customers | 136,980 | 198,176 | (31%) | 96,552 | 42% |
| ARPU7 ($) | 1,037 | 1,718 | (40%) | 1,107 | (6%) |
| AUAC8 ($) | 622 | 634 | (2%) | 988 | (37%) |
*Unaudited
David Zruia, Plus500 Chief Executive Officer, commented:
“Plus500’s outstanding performance in H1 2021 was driven by the ability of our technology to capture the current market opportunities and to consistently provide high service levels to our customers.
“We are also delighted to have made significant progress in delivering on our vision to become a global multi-asset fintech group, with the acquisition of Cunningham and CTS, which brings access to the substantial futures and options on futures market in the US and the recent launch of the ‘Plus500 Invest’ share dealing platform in Europe. Both investments help us to diversify our range of products and further broaden our geographic footprint.
“Future growth will be delivered through continued organic investments in our business, our technology and targeted bolt-on acquisitions to further expand our CFD offering, launch new trading products, introduce new financial products and deepen engagement with our customers. Having increased our expectations for the outlook for the Group, the Board is increasingly confident that Plus500 will continue to deliver further growth and consistent levels of cash generation over the medium to long term.”
