Global CFD broker Plus500 Ltd (LON:PLUS) has just released its preliminary unaudited results for the year ended 31 December 2019. The broker divides 2019 into two distinct halves, with strong improvement in H2 2019.
All key metrics showed better performance in H2 2019 compared to H1 2019, impacted by extremely low volatility in Q1 2019. Strong H2 2019 was mainly driven by increased trading opportunities identified by customers, reflecting more volatile market conditions during the rest of the year.
Financial highlights can be seen below:
- H2 2019 revenues were up 40% compared to H1 2019, to $206.5 million (H1 2019: $148.0 million) (FY 2019:$354.5 million, FY 2018: $720.4 million);
- H2 2019 EBITDA jumped 93% to $126.7 million (H1 2019: $65.6 million) (FY 2019:$192.3 million, FY 2018: $506.0 million);
- H2 2019 Net Profit also rose with 94% compared to H1, to $100.1 million (H1 2019: $51.6 million) (FY 2019:$151.7 million, FY 2018: $379.0 million);
- 2019 marked the first full year of trading under the new regulatory regime introduced by European regulators, with customer trading patterns adjusting through the year.
The Board intends to conduct a further share buyback programme in 2020 to purchase up to $30 million of the Company’s shares.
The board of directors approved new buyback programme to additional $30.0 million of Plus500’s shares, just having completed the programme from August 2019 for $50.0 million. The purchases of share will take place in an open market transaction and market conditions, share price, trading volume and other factors will be taken into consideration.
The Group also noted that it will continue its investment in technology and innovation to further enhance its customer proposition through the introduction of new features, trading instruments and trading tools, support channels and an improved customer interface.
Asaf Elimelech, Plus500
Asaf Elimelech, Chief Executive Officer of Plus500, commented:
We finished 2019 in good financial and operational shape following a period of changes for the industry, which has provided a more certain regulatory outlook for Plus500 and the industry as a whole.
We were particularly pleased with the strong improvement in financial performance in the second half of 2019 and believe that customer trading patterns have now adjusted following the regulatory changes introduced in Europe last year. We continue to monitor and prepare for any potential product intervention measures that are expected to take place in Australia during 2020.
I am also encouraged by the trading momentum we have shown through the year end, reflecting continued optimisation of our marketing spend, enhancements to our customer service, improvements in our proprietary technology platform and additional cost optimisation.
We are further pleased in our ability to provide significant value to our shareholders with the delivery of strong returns representing 100% of our 2019 net profit.