Plus500 first-quarter revenue up sharply as new customers increase
Plus500 realized revenues of $215.6 million for the three-month period from January to March, up 4% year-over-year and 14% sequentially.
Plus500's revenues for January through March totaled $215.6 million, up 4% year-over-year and 14% sequentially. Of this, customer revenue amounted to $169.6 million and customer trading results amounted to $30.6 million. The remainder came from interest income.
Strong quarter for Plus500
According to today's (Tuesday's) unaudited trading update, the company reported quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) of $102.6 million.EBITDA was up 2% from last year's first quarter and 19% from the previous quarter. The latest EBITDA margin was 48%, down from 49% in the first quarter of 2023, but up from 45% in the fourth quarter.
In addition, the number of new customers on the platform increased significantly. 31,949 new customers were added during the quarter, up 13% year-over-year and 61% sequentially.
However, the total number of active customers on the platform declined 2% year-over-year to 134,745. This compares to a 14% increase quarter-over-quarter.
Average revenue per user on the platform was $1,600 and average user acquisition cost (AUAC) was $1,320. Notably, the company's AUAC improved.
David Zruia, CEO of Plus500, said, “Plus500 delivered another strong set of operational and financial results in the period under review, benefiting from our established competitive advantage, continued strategic progress and solid financial position. “We will continue to follow our strategic roadmap to expand into new markets, develop new products and deepen our relationships with customers.”
Focus will be on expansion
Looking ahead, the firm will continue to focus on key growth opportunities, including new products, services and markets, as well as the expansion of its core OTC products, equities trading, futures and futures options products, and deepening its customer engagement and customer retention programs.
Zruia added: “As a diversified global business with a clear and proven strategy, Plus500 is well placed to continue delivering strong performance and attractive returns to shareholders.”
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