The typical revenue per user is $3000 according to Plus500

The group’s revenues totaled $832 million, up 16 percent from $718 million in 2021, according to the fintech company’s financial results released today afternoon to the London Stock Exchange. On Tuesday, Plus500 disclosed that this achievement was backed by a high level of client income, which reached $639 million over the course of the year.

Plus500’s client trading performance for FY 2022, in contrast, was $193 million as opposed to just $15.9 million the year before. The broker anticipates that over time, this key performance measure’s contribution will be largely neutral.

In summary, the spread betting and CFDs broker informed investors that its revenue for 2022 was $454 million, up 17 percent from $387 million in 2021.

Notably, the firm reported that 106,000 new accounts were added during FY 2022 despite the fact that it continued to add fewer active accounts. From the 196,336 clients it onboarded the previous year, the figure was down 46%. As a result, the group’s base of active clients decreased by over a third from 407,000 in 2021 to 280,000 during the just-ended fiscal year.

Plus500, which just completed its sponsorship agreement with Atlético de Madrid, saw an increase in its Average Revenue Per User (ARPU), which increased to $2,966 in 2022 from $1,764 in 2021 by a factor of seven hundred percent. The higher percentage of high value consumers, which also offers the possibility of rising future income, was cited by Plus500 as the reason for the improved AUAC result.

“The Group continues to expect that AUAC will rise steadily over time, as the Group’s customer profile further shifts to higher value, long term customers and as the Group invests in attracting customers to the new trading products in its portfolio and targeting additional high value customers in strategic geographies,” it said.

The onboarding costs nearly doubled year over year to $1,481, which was much more than $877 in 2021, according to Plus500’s research on the Average User Acquisition Cost (AUAC).

The broker reports that customer deposits stayed consistent, with the average deposit per active customer reaching a record annual level of $8,000 from $5,000 the year before. From $2.1 billion in FY 2021 to $2.3 billion in FY 2022, consumer deposits grew.

“The Group remains highly cash generative, supported by the relatively low levels of capital expenditure as a result of its automation and technological capabilities, with cash generated from operations during the year of $506.8m (FY 2021: $383.0m) and 112% Operating cash conversion achieved in 2022 (FY 2021: 99%),” the statement reads.

You can find out more about the broker in our Plus500 Review.

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