London-based Plus500 (LON: PLUS) has reported a robust performance in its recent trading update, surprising the market with an annual revenue of approximately $725 million for the year 2023. Additionally, the company revealed an EBITDA of around $340 million, surpassing current market expectations.
The positive outcome contrasts with earlier projections, as Plus500 initially anticipated ending the year with revenue and EBITDA in line with market expectations, set at $645 million and $300 million, respectively.
The brokerage emphasised the resilience of its balance sheet, noting its robust nature, with cash balances reaching approximately $900 million at the close of the previous year. This financial strength provides Plus500 with a solid foundation to pursue its strategic objectives and navigate market dynamics effectively.
Plus500 concluded the third quarter of 2023 with a revenue of $168.1 million and an EBITDA of $80.3 million. The first half of the year saw the broker generate $368 million in revenue, reflecting a 28% decline compared to the corresponding period in the previous year. Extrapolating from these figures, the revenue for the fourth quarter is estimated to be $188.9 million.
Notably, Plus500 is actively expanding its presence, particularly in the United States, where it recently entered a high-profile sponsorship agreement with the Chicago Bulls, a prominent basketball team.
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The company is diversifying its US operations by offering both business-to-business (B2B) and business-to-consumer (B2C) services. In addition to its retail offerings, Plus500 provides B2B market infrastructure services for institutional clients in the US futures market.
The trading update also highlighted Plus500’s commitment to shareholder returns, with approximately $350 million returned to shareholders during the fiscal year 2023. These returns were distributed through dividends and share buybacks, underscoring the company’s financial strength, operational resilience, and the Board’s confidence in the outlook for the Group.
Although Plus500 is headquartered in Israel, its listing on the London Stock Exchange makes it one of the few publicly-listed retail multi-asset brokers specialising in forex and contracts for differences (CFDs).
