TIDMPLUS
RNS Number : 1511M
Plus500 Limited
10 January 2023
10 January 2023
Plus500 Ltd.
("Plus500", the "Company" or together with its subsidiaries the
"Group")
Year End Trading Update
Excellent operational and financial performance throughout
2022
Plus500, a global multi-asset fintech group operating
proprietary technology-based trading platforms, today issues the
following trading update for the financial year ended 31 December
2022.
Operational performance and financial position
The Group delivered an excellent operational and financial
performance during FY 2022, in line with market expectations [1] ,
following several upgrades to market expectations related to
Plus500's financial performance during the year. This performance
was achieved despite lower levels of activity across financial
markets towards the end of the year, which were affected as
expected by the 2022 FIFA World Cup, and consistent with previous
World Cup tournaments. Plus500's strong performance during the year
was fundamentally driven by the Group's proven business model, its
market-leading proprietary technology and its on-going ability to
attract and retain higher value, long term customers.
FY 2022 Group revenue grew to approximately $83 2 m (FY 2021:
$718.7m), supported by a strong level of Customer Income ([2]) , a
key measure of the Group's underlying performance, of approximately
$639m during the year (FY 2021: $702.8m). Customer Trading
Performance [3] for FY 2022 was approximately $193m (FY 2021:
$15.9m), with t he Company continuing to expect that its
contribution will be broadly neutral over time.
This strong revenue performance, together with the Group's
efficient and flexible cost base, contributed to strong growth in
EBITDA to approximately $454m during the year (FY 2021: $387.1m).
Basic earnings per share for FY 2022 is expected to be
approximately $3.8 (FY 2021: $3.06).
The Group's base of Active Customers ([4]) during FY 2022
remained robust, at approximately 28 0,000 (FY 2021: 407,374),
including a substantial amount of higher value, long term
customers. Approximately 106,000 New Customers ([5]) were
on-boarded during the year (FY 2021: 196, 336 ), supported by
Plus500's on-going investments in product development and customer
engagement initiatives.
Against a challenging macro-economic environment, Plus500's
balance sheet remains extremely robust, with the Group continuing
to hold no debt or loans and with cash balances at 31 December 2022
increasing to more than $ 9 00 m (31 December 2021: $749.5m).
Strategic Progress and Outlook
Plus500 made continued progress against its strategic roadmap in
FY 2022, further driving diversification of the Group's revenue
streams, geographic footprint and business model.
In the substantial US futures market, the Group is targeting
several significant growth opportunities and, to this end, made
excellent progress in FY 2022. This progress was supported by the
Group's new sponsorship partnership with the NBA Chicago Bulls,
announced during the year, which will drive brand awareness for
Plus500 in the attractive US market.
In Q3 2022, Plus500 launched TradeSniper, an intuitive
proprietary futures trading platform specifically tailored for the
sizeable US retail trading market.
The Group also developed a strategic position as a market
infrastructure provider during the year, with a view to delivering
brokerage-execution and clearing services for institutional
clients. This strategic position in the institutional market is
supported by the Group's robust financial position, its
technological capabilities and its position as a full clearing
member of the CME Group exchanges and the Minneapolis Grain
Exchange (MGEX ( , which were achieved during the year.
Plus500 further deployed its strategic roadmap in FY 2022, and
executed against its global expansion plans, by completing the
acquisition of a regulated entity in Japan, for which integration
plans are progressing well. Over time, this will enable the Group
to access the substantial Japanese trading market, where Plus500
will apply its considerable technological capabilities and
financial strength to build its market position.
The Company continues to invest in product development to
further deepen customer engagement, including through continued
recruitment at the Company's R&D centres in Israel. Plus500 is
proud to now have a latent base of over 24 million customers
registered on its trading platforms since inception, which may be
accessible for the Group ' s new retention technologies and new
products .
Plus500 will continue to assess and pursue a range of additional
growth opportunities, through organic investments and by actively
targeting acquisitions, to build its strategic position as a global
multi-asset fintech group.
The Board remains confident about the Group's prospects,
particularly as a result of the significant operational progress
and financial momentum achieved by Plus500 over recent years. The
Board continues to expect that Plus500 will deliver sustainable
growth over the medium to long term.
Shareholder Returns
The Company's shareholder returns policy continues to be to
return at least 50% of net profits to shareholders through share
buyback programmes and dividends, on a half yearly basis. The Board
will also consider executing special share buybacks, or other
distributions, on a half yearly basis.
During FY 2022, the Company repurchased 6,943,359 of its shares
for a total consideration of $138. 8 m.
Since its first share buyback programme commenced in 2017, the
Company has repurchased approximately 21.8m shares at a cost of
approximately $350m, emphasising a clear validation of the Board's
confidence in the Group's business model and future prospects.
Notice of Results
The Company will publish its preliminary results for FY 2022 on
14 February 2023.
David Zruia, Chief Executive Officer , commented :
"2022 was another excellent year for Plus500, providing further
clear evidence of our continued successful execution against our
strategic roadmap and key operational objectives. The Group's
strategic, operational and financial traction continues to be
primarily driven by the power of our market-leading proprietary
technology and our on-going ability to attract and retain higher
value customers over the long term.
"We continue to diversify and develop our business as a global
multi-asset fintech group, supported by on-going growth investments
in a number of areas, ensuring Plus500 remains well-positioned to
deliver sustainable growth over the medium to long-term."
For further details
Plus500 Ltd.
Elad Even-Chen, Chief Financial +972 4 8189503
Officer +44 7825 189088
Rob Gurner, Head of Investor ir@Plus500.com
Relations
Brunswick
Charles Pretzlik, Partner +44 20 3128 8549
Paul Durman, Partner plus500@brunswickgroup.com
About Plus500
Plus500 is a global multi-asset fintech group operating
proprietary technology-based trading platforms. Plus500 offers
customers a range of trading products, including OTC
("Over-the-Counter" products, namely Contracts for Difference
(CFDs)), share dealing, as well as futures and options on
futures.
The Group retains operating licences and is regulated in the
United Kingdom, Australia, Cyprus, Israel, New Zealand, South
Africa, Singapore, the Seychelles, the United States, Estonia and
Japan and through its OTC product portfolio, offers more than 2,500
different underlying global financial instruments, comprising
equities, indices, commodities, options, ETFs, foreign exchange and
cryptocurrencies. Customers of the Group can trade its OTC products
in more than 50 countries and in 30 languages. Plus500 does not
permit customers located in the US to trade its OTC products.
Plus500 does not utilise cold calling techniques and does not
offer binary options. Plus500's trading platforms are accessible
from multiple operating systems (Windows, iOS and Android) and web
browsers. Customer care is and has always been integral to Plus500,
as such, OTC customers cannot be subject to negative balances. A
free demo account is available on an unlimited basis for OTC
trading platform users and sophisticated risk management tools are
provided free of charge to manage leveraged exposure, and stop
losses to help customers protect profits, while limiting capital
losses.
Plus500 shares have a premium listing on the Main Market of the
London Stock Exchange (symbol: PLUS) and are a constituent of the
FTSE 250 index. www.plus500.com .
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public
domain.
Forward looking statements
This announcement contains statements that are or may be
forward-looking statements. All statements other than statements of
historical facts included in this announcement may be
forward-looking statements, including statements that relate to the
Group's future prospects, developments and strategies. The Company
does not accept any responsibility for the accuracy or completeness
of any information reported by the press or other media, nor the
fairness or appropriateness of any forecasts, views or opinions
express by the press or other media regarding the Group. The
Company makes no representation as to the appropriateness,
accuracy, completeness or reliability of any such information or
publication.
Forward-looking statements are identified by their use of terms
and phrases such as "believe", "targets", "expects", "aim",
"anticipate", "project", "would", "could", "envisage", "estimate",
"intend", "may", "plan", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. The forward-looking statements in this announcement
are based on current expectations and are subject to known and
unknown risks and uncertainties that could cause actual results,
performance and achievements to differ materially from any results,
performance or achievements expressed or implied by such
forward-looking statements. Factors that may cause actual results
to differ materially from those expressed or implied by such
forward looking statements include, but are not limited to, those
described in the Risk Management Framework section of the Company's
most recent Annual Report. These forward-looking statements are
based on numerous assumptions regarding the present and future
business strategies of the Group and the environment in which it is
and will operate in the future. All subsequent oral or written
forward-looking statements attributed to the Company or any persons
acting on its behalf are expressly qualified in their entirety by
the cautionary statement above. Each forward-looking statement
speaks only as at the date of this announcement. Except as required
by law, regulatory requirement, the Listing Rules and the
Disclosure Guidance and Transparency Rules, neither the Company nor
any other party intends to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
[1] Market expectations based on compiled analysts' consensus
forecasts, which can be found on the Investor Relations section of
the Company's website
[2] Customer Income - Revenue from OTC Customer Income (customer
spreads and overnight charges) and Non-OTC Customer Income
(commissions from the Group's futures and options on futures
operation and from Plus500 Invest, the Group's share dealing
platform)
[3] Customer Trading Performance - Gains/losses on customers'
trading positions
[4] Active Customers - Customers who made at least one real
money trade during the period
[5] New Customers - Customers depositing for the first time
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFLDLDIAIIV
(END) Dow Jones Newswires
January 10, 2023 02:00 ET (07:00 GMT)
Plus500 (LSE:PLUS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Plus500 (LSE:PLUS)
Historical Stock Chart
From Apr 2023 to Apr 2024
