Publicly
traded broker Plus500 published its full financial results for 2023, reporting
higher financial indicators than in the preliminary results presented three
months ago. However, net profit remained at around $270 million, translating
into a decrease of nearly 40% compared to the previous year, when the
London-based company earned over $370 million.
At the
beginning of January, Plus500 presented a trading update with preliminary
results for 2023, significantly exceeding analysts’ expectations. The report
suggested that revenues would be around $725 million. However, the final report
shows that they were higher, reaching $726.2 million.
“Plus500
delivered further strategic and operational progress during FY 2023. This was
enabled by our technological expertise, robust financial position and
consistent execution against our strategic roadmap in existing and new markets,
both organically and inorganically,” commented Elad Even-Chen, the Chief
Financial Officer of Plus500, in the report.
However,
compared to very strong 2022 results, this value was 14% lower when
net profit was at $832.6 million. The decline applies to all other main
financial metrics, including operating profit, which stood at $336.4 million,
and earnings per share, which fell from $3.77 to $3.12.
EBITDA
stood at $340.5 million, falling significantly from the $453.8 million reported
a year earlier. However, Plus500, in its report does not focus on the decline in
dynamics in 2023 compared to 2022 but instead writes about “another
strong year” and “lean and flexible cost base,” which allowed it
to significantly exceed analysts’ expectations for results, which at the
beginning of the year were at the level of $645 million in revenue and $300
million in EBITDA.
Source: Plus500
Over 90,000 New Customers
The company
managed to maintain high dynamics in acquiring new customers. In 2023, 90,944
retail investors joined the group of people using Plus500‘s services. Although
this was less than in 2022 when the company acquired a record number of nearly
107,000 customers, maintaining high results was possible “by the continued
investment in the Group’s diversified marketing approach.”
The number
of active customers remained above 230,000, and the average profit per customer
was $3,116, with an average customer acquisition cost of $1,489. These values
remained very close to those from 2022. However,
the average deposit per customer increased, reaching a record annual level of
$10,300, compared to $8,000 reported a year earlier.
“In
2023, we achieved a record high average deposit per Active Customer, reflecting
our focus on higher value customers and the strength of our technology,”
Plus500 summarized in its report.
Recently, the company initiated a $100 million share buyback program following the completion of a $60 million buyback. The purpose of the repurchase is to enhance shareholder returns. Plus500 shares have increased 8.5% in 2024.
Publicly
traded broker Plus500 published its full financial results for 2023, reporting
higher financial indicators than in the preliminary results presented three
months ago. However, net profit remained at around $270 million, translating
into a decrease of nearly 40% compared to the previous year, when the
London-based company earned over $370 million.
At the
beginning of January, Plus500 presented a trading update with preliminary
results for 2023, significantly exceeding analysts’ expectations. The report
suggested that revenues would be around $725 million. However, the final report
shows that they were higher, reaching $726.2 million.
“Plus500
delivered further strategic and operational progress during FY 2023. This was
enabled by our technological expertise, robust financial position and
consistent execution against our strategic roadmap in existing and new markets,
both organically and inorganically,” commented Elad Even-Chen, the Chief
Financial Officer of Plus500, in the report.
However,
compared to very strong 2022 results, this value was 14% lower when
net profit was at $832.6 million. The decline applies to all other main
financial metrics, including operating profit, which stood at $336.4 million,
and earnings per share, which fell from $3.77 to $3.12.
EBITDA
stood at $340.5 million, falling significantly from the $453.8 million reported
a year earlier. However, Plus500, in its report does not focus on the decline in
dynamics in 2023 compared to 2022 but instead writes about “another
strong year” and “lean and flexible cost base,” which allowed it
to significantly exceed analysts’ expectations for results, which at the
beginning of the year were at the level of $645 million in revenue and $300
million in EBITDA.
Source: Plus500
Over 90,000 New Customers
The company
managed to maintain high dynamics in acquiring new customers. In 2023, 90,944
retail investors joined the group of people using Plus500‘s services. Although
this was less than in 2022 when the company acquired a record number of nearly
107,000 customers, maintaining high results was possible “by the continued
investment in the Group’s diversified marketing approach.”
The number
of active customers remained above 230,000, and the average profit per customer
was $3,116, with an average customer acquisition cost of $1,489. These values
remained very close to those from 2022. However,
the average deposit per customer increased, reaching a record annual level of
$10,300, compared to $8,000 reported a year earlier.
“In
2023, we achieved a record high average deposit per Active Customer, reflecting
our focus on higher value customers and the strength of our technology,”
Plus500 summarized in its report.
Recently, the company initiated a $100 million share buyback program following the completion of a $60 million buyback. The purpose of the repurchase is to enhance shareholder returns. Plus500 shares have increased 8.5% in 2024.
