LONDON (ShareCast) - (Sharecast News) - Contracts-for-difference platform Plus500 said second quarter income more than halved clients cashed in on coronavirus-related market volatility.


The company, which allows traders to bet on share, foreign exchange and commodity price movements, on Monday said second quarter revenue to date stood at $102.5m after customer wins had slashed income from $249m.

It added that most of the change had come in the week ending June 5, after a rally in the share and oil markets globally.

Plus500 said full year revenue and profitability was expected to be in-line with consensus expectations, adding that it added 100,574 new customers since the start of the period, already ahead of its expectations for the three months, and an increase on the 82,951 new customers added in the first quarter.

Interim chief executive David Zruia said net client deposits had risen to around $488.4m, three times higher than at the end of December 2019.

"We have consistently stated that customer trading performance is subject to significant market movements and is therefore likely to fluctuate. This is magnified during periods of heightened market volatility such as those we are currently experiencing and given the growing scale of the business," he said.

"Nonetheless we continue to expect this performance to revert to a medium-term historic level of near zero and our outlook for the year remains unchanged."

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