Level 2

Plus500 profits, customer numbers soar on Covid-19 volatility

By Frank Prenesti

Date: Tuesday 07 Apr 2020

(Sharecast News) - Online platform Plus500 reported a massive rise in first quarter profits as market volatility caused by the coronavirus crisis drove a surge in trading and customer numbers.
The contracts-for-difference firm on Tuesday said revenue soared to $316.6m from $53.9m and the number of active customers jumped to 194,024 from 97,921 as retail traders worked from home during the pandemic.

Core earnings rose 1,863% year on year to $231.6m as margins expanded 73% compared to 22% in 2019. The company forecast full year revenue and profitability "to be substantially ahead of current consensus expectations".

Plus500 said that while the first days of the second quarter had seen continued heightened levels of volatility, it was difficult to forecast whether this would persist.

The company reiterated its policy to return at least 60% of net profits to shareholders through a combination of dividends and share buybacks.

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