Plus500’s Revenue Dips 28%YoY in H1 2023 amid Declining Active Customers

<p>Plus500 has released its interim results for the first
half of 2023, disclosing mixed performance during the period. Despite an
improvement compared to the preceding six months, Plus500's results show a 28%
year–over–year drop in revenue.</p><p>The London-headquartered
<a href="https://www.financemagnates.com/terms/f/fintech/">fintech</a> firm posted USD $368 million in revenue for the first half, which is a
decrease of $142 million from USD $511 million in the <a href="https://www.financemagnates.com/forex/brokers/plus500-expects-2023-results-in-line-with-outlook-after-h1-revenue-rise/" target="_blank">corresponding
period</a> of last year.
The revenue comprised USD $346 million in trading income and USD $22 million
in interest income.</p><p>EBITDA Margin</p><p>The company posted an
EBITDA margin of 47%, which compares to 60% in the first half of 2022. The interest
income of Plus500 increased during the period, reportedly due to the rise in
the global interest rates facilitated by the central banks.</p><p>Plus500's Customer
Trading performance was USD $42 million during the first half. This metric saw
a sharp decline compared to USD $172 million in the first half of last year.
However, it improved from USD $21 million reported in the second half
of last year.</p><p>David Zruia, the Chief
Executive Officer at Plus500, remarked: "2023 marks the 10th anniversary
of our listing on the London Stock Exchange and I am immensely proud of the
progress we have delivered over that time in becoming the trusted,
differentiated and diversified <a href="https://www.financemagnates.com/terms/m/multi-asset/">multi-asset</a> fintech leader we are today."</p><p>"With continued
operational and financial momentum being achieved, we also made substantial
progress in delivering against our strategic priorities, particularly in
harnessing the attractive growth opportunities in the US futures market and
obtaining new regulatory licenses in the high growth UAE market and very
recently in the Bahamas," he added.</p><p>Net Profit</p><p><a href="https://www.financemagnates.com/tag/plus500/" target="_blank">Plus500's</a> net profit for the period was USD $147
million, an increase compared to USD $126 million in the corresponding period
of last year. Additionally, the company's basic earnings per share jumped 19%
to USD $1.61. Plus500 had 175,762 active customers in the
first half, which was a 19% decline from 216,928 in the same period last year.</p><p>Plus500's
strategic financial moves include a <a href="https://www.financemagnates.com/forex/plus500-shares-rebounds-from-14-month-lows-following-1013-million-share-repurchase/" target="_blank">share
buyback program</a> worth
$214 million during the first half. Additionally, the company declared a final
and special dividend of USD $29.9 million in February and paid to the
shareholders on July 11.</p>

This article was written by Jared Kirui at www.financemagnates.com.