Plus500 has released a trading update with its performance expectations for the fourth quarter and the financial year 2021.
The retail broker stated it expects to close the year with $718 million in revenue. Of that, $160 million is expected as the revenue generated in the final quarter.
The Q4 revenue is 24.31% lower that the what the company reported in the third quarter of 2021. However, on yearly basis, the company generated 74% more than the fourth quarter of 2020.
Consistently high customer activity
The broker noted that the revenue figure in Q4 is largely supported by Customer Income which is expected to generate $166 million in the last three months of the year. Plus500 reported it experienced a consistently high level of customer trading activity throughout 2021.
The number of Plus500’s active numbers remained high throughout the year at 406,000, of which 171,000 in the fourth quarter. The London listed broker onboarded 196,150 new customers for the year and 33,000 for the final quarter.
The customer trading performance for the year is expected to be around $16 million.
Additionally, Plus500 expects EBITDA to reach $71 million for the quarter and $387 million for the year. The basic earnings per share is expected to be approximately $3.10.
David Zruia, Chief Executive Officer, commented:
“We are pleased to have delivered another strong year of financial performance, as well as making significant progress with our strategic and operational plans to strengthen our position as a leading global multi-asset fintech group.
With the Group having further strengthened its positioning during 2021, the Board remains confident about the future for Plus500 and continues to expect that the Group will deliver sustainable growth over the medium to long term.”
Buyback programme
The retail broker has repurchased 617,679 of its shares for a total consideration of $10.8 million since the announcement of its latest buyback programme, which will end in February.
Plus500 began buying back its ordinary shares from the market in 2017. Since then, the firm has repurchased over $211 million worth of its own ordinary shares.
