Plus 500 Ltd upbeat about prospects after outperforming expectations

Plus500 Ltd (LSE:PLUS), which runs a platform for trading contracts for difference (CFDs), confirmed it traded above market expectations in 2021.

The fintech, which raised full-year revenue and underlying earnings (EBITDA) guidance as recently as late October, said EBITDA is now expected to be roughly US$387m for the year versus the current consensus market forecast of US$326.0mln. Revenue is around US$718mln (forecast: US$641.7mln).

Basic earnings per share (EPS) is expected to be around US$3.10, compared to an expected US$2.975.

The fourth quarter saw the company achieve EBITDA of around US$71mln on revenue of roughly US$160mln.

Customer income, which the company regards as a key metric of its performance, clocked in at about US$702mln after a fourth-quarter contribution of around US$166mln.

The customer trading performance for the full year was in the region of US$16mln after a negative outcome of some US$6mln in the final quarter. Plus 500 continues to expect the contribution from the customer trading performance will be broadly neutral over time.

The group’s base of active customers during 2021 remained well ahead of pre-pandemic levels, at roughly 406,000 (Q4 2021: about 171,000). The number of new customers signing up totalled 196,150 or thereabouts of which 33,000 or so came on board in the final quarter.

“We are pleased to have delivered another strong year of financial performance, as well as making significant progress with our strategic and operational plans to strengthen our position as a leading global multi-asset fintech group,” said David Zruia, the chief executive officer.

“With the group having further strengthened its positioning during 2021, the board remains confident about the future for Plus500 and continues to expect that the group will deliver sustainable growth over the medium to long term.”