CFD broker Plus500 Ltd (LON:PLUS) has earlier today published an update regarding its performance in the third quarter of 2015.
The company reported a steep year-on-year and quarter-on-quarter rise in revenues. Although average user acquisition cost (AUAC) rose in annual terms, reflecting the corporate strategy to gain high-worth customers, the company managed to record a robust rise in average revenue per user (ARPU).
Let’s check out the particular metrics for Q3 2015:
- Revenues amounted to $80.9 million, up 44% from Q3 2014.
- The number of new customers amounted to 17,047, up 15% from Q3 2014.
- The number of active customers was 52,727, up 21% from Q3 2014.
- ARPU was $1,534, up 19% from Q3 2014.
- AUAC was $1,468, up 46% from Q3 2014.
Across regions, the most active one for trading in Q3 2015 was Western Europe, which generated 75% of total revenue in the quarter (Q3 2014: 70%). Overall, in Q3 2015, 90% of total revenues came from regulated markets.
Plus500’s proprietary trading platform has been at the core of the growth, enabling Plus500 to adapt rapidly to changing market conditions and offer customers additional opportunities to trade CFDs. The company saw growth from trading in both commodities and equities due to the ongoing market volatility.
The broker has also seen benefits from its continuing substantial investment in marketing, attracting a bigger number of high value customers. Plus500 attributed this to the strength of its proprietary automated marketing platform, which operates across multiple advertising channels, as well as other initiatives such as the sponsorship with Atlético de Madrid.
The Board is comfortable with the increase in average user acquisition cost (“AUAC”) in order to attract high value customers.
Regulatory update
The Group continues to be the subject of regulatory scrutiny. However, throughout the period Plus500 has continued to work with, and provide any requested information to, the relevant regulators in the jurisdictions that it operates in but is currently not the subject of any restrictions on its business operations. The Group has also been working closely with its professional advisors to review and, where necessary, improve the regulatory aspects of its trading model.
Merger Agreement
As previously announced, the statutorily required regulatory assessment of the Acquisition is expected to be completed by the end of November 2015.
Outlook
The broker said it started Q4 2015 on a positive note. The continuing market volatility, focused marketing strategy and ongoing improvement in technology are expected to be significant contributors to the company’s ability of gaining new customers at an attractive cost.
As a result, the Board still expects revenues to be ahead of 2014 but with profitability still not expected to match that of last year.
To view the official filing with the LSE, click here.