Proactive Investors - Run By Investors For Investors

Plus500 expects full-year 2018 revenue to beat expectations

The online contracts for differences trading platform provider said core earnings rose 72% to US$259.2mln for the year ended December 31, with revenue rising 33% to US$437.2mln
Touch screen stock chart going up
Plus 500 also stated that it does not expect to experience any adverse effects from the European regulatory action on CFDs and Binary options

Plus500 Ltd (LON:PLUS) shares jumped higher today after the spread betting firm said it expects full-year 2018 revenue to be significantly ahead of market expectations.

The online contracts for differences (CFDs) trading platform provider said core earnings rose 72% to US$259.2mln for the year ended 31 December 2017, with revenue rising 33% to US$437.2mln.

READ: Plus 500 leaps after saying full year profit and revenue seen beating market expectations

The numbers outstripped analyst expectations, with core earnings predicted at US$240mln and revenue of US$425.8mln for the year.

Plus500 also saw a significant increase in customer numbers, reporting a 136% increase in new customers to 246,946 and a 103% increase in active customers to 317,175.

The company also announced that it is unlikely to suffer any material adverse effects on its business from the European regulatory crackdown on CFDs and Binary options.

Plus 500's chief executive officer Asaf Elimelech said: "We will continue to make the necessary adjustments to comply with regulatory changes as they are announced. Whatever the final outcome of the current ESMA and FCA proposals is, we will implement them in full and adapt accordingly."

In mid-morning trading, Plus 500 shares were 7.2% to 1,265p.

READ: Plus 500 sees first-half earnings double amid strong growth in clients, revenues

In a note to clients in reaction to the numbers, analysts at Liberum Capital raised their target price for Plus500 to 1,507p, up from 1,232p.

They also reiterated a 'buy' rating on the stock and said: "Valuation remains compelling".


View full PLUS profile View Profile

Plus 500 Timeline

September 05 2016

Related Articles

October 11 2017
"It will empower us to benefit from increased scale, enhance our product proposition and leverage operational efficiencies to attract more clients, and significantly increase our AUM."

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use