Plus500 Expected to Exceed Annual Revenue Objectives Despite Challenging Q3

Tuesday, Plus500 presented a trading update that highlighted a challenging third quarter but an overall successful year. The Israeli-British anticipates handily exceeding revenue goals for the fiscal year.

In a difficult Q3 where turbulent market circumstances hit a large portion of the retail FX industry, the London-based broker reported an 8 percent fall in revenue year-over-year for the third quarter of 2022. The amount was $194.5 million, compared to $211.4 million in the same quarter of the prior year.

In addition, the unaudited number revealed that EBITDA for the quarter decreased by 21 percent to $101.8 million. In addition, the EBITDA margin decreased from 61 percent to 52 percent.

The most recent data were released after the broker completed a successful first half of the year. The company's sales increased by 68 percent in both the first and second quarters of the current fiscal year. This increased total revenue for the first nine months of 2022 by 27% to $705,9 million.

David Zruia, the CEO of Plus500, was pleased with the company's performance and its prospects. "Plus500 has continued to excel in 2022, powered by the strength of our market-leading proprietary technology and our ability to acquire and maintain high-value, long-term clients," he said.

Plus500 experienced a mixed quarter in terms of client data, with fewer active traders but a significant increase in the average customer deposit.

The number of new clients decreased by 9 percent to 23,747, and the number of active customers decreased by 19 percent to 134,657. The three-month customer revenue was $149.4 million, compared to $156.9 million the prior year.

However, average customer deposits increased, increasing from $2,750 to $3,900.

In addition, the broker is expanding its product line and entering new markets, primarily to diversify its revenue streams and business model.

It has increased its presence on the US futures market and is now concentrating on the integration of a Japanese company it purchased this year.

Meanwhile, the broker's board is optimistic regarding both medium- and long-term success.

"We have made additional progress in executing on our strategic priorities, particularly in beginning to capitalize on the huge growth prospects available in the United States. Supported by continuous investment in expansion, we continue to diversify and build the business as a global multi-asset fintech firm, ensuring Plus500 remains well-positioned to achieve medium- to long-term sustainable growth," Zruia noted.