CFD trading platform Plus500 announced its preliminary results for the financial year ended on 31 December 2020. The company also launched a new share buyback program that will run until 11 August 2021.
In the heightened volatility of last year, the Israel-based broker reported a somewhat dull fourth quarter but still a significant growth for the financial year.
The broker reported $91.9 million for Q4 with a 4% decline compared to Q4 of 2019. EBITDA dropped to $19.9 million from $56.6 million in the previous year, an enormous 65% fall YoY.
However, the performance from the previous quarters was solid and so the year ended quite well. The total revenue for the year was $872.5 million. This was a 146% jump compared to previous year when it was previous year’s $354.5 million.
EBITDA skyrocketed by 168% to $515.9 million, compared to $192.3 million in the previous year. The company ended with net profit of $500.1 million from 2019’s $151.7 million.
Client activity also remained strong on the platform. Plus500 reported 50,314 new traders in the fourth quarter, a strong increase of 158% from the previous year when it onboarded 19,489 new traders. The number of active traders for the quarter was 117% higher than the previous year at 215,305.
The trading platform reported a massive increase of 223% in onboarding new clients for the year to 294,728.
David Zruia, Chief Executive Officer, commented:
David Zruia Source: LinkedIn
2020 was an exceptional year for Plus500, in unprecedented market conditions, where we delivered a record performance due to the strength and agility of our technology and its ability to respond rapidly to market developments and news events. Our performance was supported by the commitment of our people who, in challenging circumstances, given the COVID-19 pandemic, ensured that our customers received a consistently high quality experience.
Our vision is to enable simplified, universal access to financial markets, as we start to evolve from a technology company solely focused on CFDs to a multi-asset fintech group over time. We aim to achieve this by accessing multiple growth opportunities, through organic investment in our technology and targeted M&A. Specifically, we aim to expand our CFD offering geographically, launch new trading products, introduce new financial products and deepen our engagement with customers to achieve growth in the coming years.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
