Plus500 received a boost from high levels of volatility in the first part of 2020
Plus500 (LON:PLUS), the online trading platform, forecast its yearly revenue to surpass analysts’ expectations, while confirming its profit for H1 fell from the surge seen during 2020.
Analysts’ expectations are for revenue to come in at $476.7m for the year ending in December 2021.
Plus500 confirmed annual revenue of $872.5m for last year and $354.5m for 2019.
Trading platforms received a boost from high levels of volatility in the first part of 2020, when the pandemic brought about a sell-off in the market. Companies such as Plus500 profited from the trend, particularly from the hype around ‘meme stocks‘.
Plus500 saw an increase in its number of active users from 328,409 in H1 202 to 333,940 in H1 of this year.
The London-listed firm says its expansion into futures and trading markets supported its recovery from the second half of last year. The company acquired Cunningham Commodities, a futures commission merchants, and CTS, a technology trading platform, to allow it to more easily make the transition.
“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,” said David Zruia, chief executive officer of Plus500.
“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.”
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