Plus500 Ltd
today (Monday) reported a visible growth in the third quarter of 2024. Its
revenue climbed 11% to $187.3 million, and new customer acquisition surged 21%
year-over-year.
Plus500 Reports Q3 Growth
with 11% Revenue Jump
The
company’s EBITDA reached $82.2 million, marking a 2% increase from the previous
year. However, the EBITDA margin contracted to 44% from 48% as the company
continued its strategic investments in market expansion and product development.
“During the
quarter, revenue and EBITDA increased by 11% and 2% year-on-year respectively,
highlighting our continued investment in attracting new customers, which
resulted in the number of new customers increasing by 21% compared to Q3 2023,”
commented David Zruia, Chief Executive Officer of Plus500.
Customer
trading activity increased significantly, with total trades reaching 14.5
million during the quarter, up from 10.1 million in Q3 2023. Additionally, the
company’s active customer base grew to 120,968, representing a 2% increase from
the previous year. More significantly, the average deposit per active customer
jumped 17% to $6,150.
Average
Revenue Per User (ARPU) showed improvement, rising 9% to $1,548 in Q3 2024,
while the Average User Acquisition Cost (AUAC) increased proportionally to
$1,527. Currently, CMC Markets performs best in these metrics. A comparison of five different brokers, prepared by Finance Magnates, can be found here.
“The Group
remains strategically well positioned to capture both short-term market
dynamics, as well as the longer-term structural growth trends in its end
markets, as evidenced by the strong momentum seen during 2024 to date,” Zuria
added.
The company
also maintained a strong balance sheet with cash reserves exceeding $950
million, even after distributing approximately $75 million in dividends and
spending $53 million on share buybacks.
The UAE
market, where Plus500 obtained a regulatory license in early 2023, has quickly
become a strategic focus. The company is also planning to expand its product
offerings in Japan with additional asset classes and trading products.
“For FY
2024, the Board expects that Plus500’s performance will be in line with
recently upgraded market expectations,” the company concluded.
$110 Million Share Buyback Program
In August,
Plus500 introduced a
new share buyback program valued at up to $110 million, following a
recently completed $100 million buyback announced in
February. This initiative is part of a broader $185.5 million shareholder
return plan outlined in the company’s
H1 2024 results.
Plus500 has
consistently engaged in share buybacks, aiming to enhance shareholder value and
efficiently manage surplus cash. For publicly traded companies, buybacks can
offer tax advantages, improve financial ratios, and consolidate ownership.
“The newest
share buyback reflects the Group’s strong financial position, cash-generative
model, and commitment to delivering steady shareholder returns over the medium
term,” the company stated in the announcement.
Under the
program’s conditions, Plus500 is authorized to repurchase up to 5,694,522
shares in open market transactions, managed by Panmure Liberum Limited
according to predetermined guidelines, with no discretionary influence from
Plus500 or its board.
The buyback
program will run until March 31, 2025, allowing the company to continue
purchases during closed periods within this timeframe if needed.
This article was written by Damian Chmiel at www.financemagnates.com.
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