Plus500 posts $832 million in revenue for FY 2022, with significant EBITDA increase

Plus500 Ltd (LON:PLUS), an online trading brokerage firm, released a trading update for the fiscal year that ended on December 31, 2022.

As a result of various upgrades to market expectations relating to Plus500’s financial performance throughout the year, the Group claims that its financial performance during FY 2022 was in line with such expectations.

This result was made possible despite weaker financial market activity near the year’s end, which was impacted as anticipated by the 2022 FIFA World Cup and in line with past World Cup competitions.

A robust level of Customer Income, a crucial indicator of the Group’s underlying success, of almost $639 million throughout the year (FY 2021: $702.8 million), helped the FY 2022 Group revenue increase to roughly $832 million (FY 2021: $718.7 million). Customer Trading Performance was over $193 million in FY 2022 (compared to $15.9 million in FY 2021) and the company continues to anticipate that its contribution would be largely neutral over time.

Together with the Group’s effective and adaptable cost structure, this strong sales performance helped to propel EBITDA to over $454 million throughout the year (up from $387.1 million in FY 2021). For FY 2022, basic earnings per share are projected to be at $3.8 (up from $3.06 in FY 2021).

About 280,000 Active Customers made up the Group’s base in FY 2022 (compared to 407,374 in FY 2021), including a sizable number of long-term, higher-value clients. During the year, almost 106,000 new customers were added (FY 2021: 196,336).

In FY 2022, Plus500 continued to advance along its strategic plan, significantly advancing the Group’s diversification of its revenue streams, global reach, and business model.

The Group is pursuing a number of significant expansion prospects in the sizeable US futures market and made outstanding progress toward this goal in FY 2022. This development was assisted by the Group’s recently announced sponsorship agreement with the NBA Chicago Bulls, which will raise Plus500’s profile in the lucrative US market.

A user-friendly customized futures trading platform called TradeSniper was introduced by Plus500 in Q3 2022 with a focus on the sizable US retail trading sector.

The Company’s policy on shareholder returns remains to distribute at least 50% of net income to shareholders on a semi-annual basis through share buyback programs and dividends. On a biannual basis, the Board will also consider carrying out special share buybacks or making other distributions.

The company bought back 6,943,359 shares for a total of $138.8 million during FY 2022.

The Company has repurchased around 21.8 million shares at a cost of about $350 million since its first share buyback program started in 2017, underscoring a definite validation of the Board’s confidence in the Group’s business model and future prospects.

Chief Executive Officer David Zruia said:

“2022 was another excellent year for Plus500, providing further clear evidence of our continued successful execution against our strategic roadmap and key operational objectives. The Group’s strategic, operational and financial traction continues to be primarily driven by the power of our market-leading proprietary technology and our on-going ability to attract and retain higher value customers over the long term.

“We continue to diversify and develop our business as a global multi-asset fintech group, supported by on-going growth investments in a number of areas, ensuring Plus500 remains well-positioned to deliver sustainable growth over the medium to long-term.”

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