Plus500 Ltd raises forecast but says industry sees lower volumes

Plus500 Ltd (LSE:PLUS) has again raised its revenue and profit forecast for the current year, as the trading platform said it was attracting and retaining ‘higher value’ clients’ despite higher volumes. weak in the financial sector”.

The operator of the CFD trading platform said it expects net and underlying profit (EBITDA) for the year to be above current market expectations after a “period of operational and financial events” during the first half of the calendar year.

With growth accelerating in the second quarter, half-year revenue of US$511.4 million increased 48% year-on-year, while EBITDA jumped 63% to 305, US$3 million from improved gross margin.

The addition of 57,275 new customers in the last six months included 23,535 in the second quarter, with a total of 216,928 active customers in the period compared to 209,465 a year ago.

It was boosted by new institutional futures trading moving into the U.S., with a retail offering to launch in the second half, as well as a similar entry led by an acquisition in Japan expected shortly after a purchase made during the period.

Cash balance topped $950 million as of June 30, following strong levels of cash generation and $51.7 million of $100 million of planned share buybacks and dividend payment of $60 million.

The company’s shares rose 4.8% to 1,637p in early trading on Tuesday.