Retail FX and CFD broker Plus500 Ltd (LON:PLUS) has earlier today published a trading update for the first three months of 2016, with revenues staging a rise in both quarterly and annual terms, In fact, quarterly revenues hit a record level of $85.2 million, up 26% from the preceding quarter and up 4% from the first quarter of 2015.
The company noted the resumption of onboarding of new customers by its UK business in January 2016, with the Board pleased with progress to date. Although Group total Q1 2016 new customer numbers fell 12% year on year, they were 85% higher than in the final quarter of 2015 showing the underlying momentum in the business.
Highlights:
- Record quarterly revenues of $85.2m and record number of Active Customers 68,000;
- Continued market share growth in our leading markets;
- Volatile market conditions were conducive to high levels of customer trading and new sign ups;
- Strong new customer additions, up 85%, compared to Q4 2015.
Outlook
The Board sticks to its guidance that the Company will achieve a higher EBITDA margin than in 2015. It also reaffirms its base 60% pay-out ratio dividend policy and retains flexibility to pay special dividends or buy back shares when the company generates surplus cash, as appropriate.
Management comments
Asaf Elimelech, the new Chief Executive of Plus500, commented:
“We are very pleased with our first quarter performance which is significantly ahead of the last quarter of 2015, and compares favourably against a very strong first quarter last year. We continue to benefit from volatile market conditions which are stimulating new customer additions and trading activity.
“As we noted in February at the time of the 2015 results, we have more high value customers, an enhanced trading platform, more robust processes, a stronger brand and more routes to market, supported by a strong balance sheet. We are therefore confident that Plus500 will continue growing and believe we will have another successful year.”
You can view the full regulatory filing by Plus500 by clicking here.