Shares of Plus500 Ltd (LSE:PLUS) rose 7% in early trade on Tuesday after the fintech firm announced it is trading in line with recently upgraded market expectations for fiscal year 2023.
The company, which specialises in trading platforms, reported a 5% increase in revenue for the third quarter ending 30 September, reaching US$168.1 million. This includes trading income of US$153.7 million and interest income of US$14.4 million.
Additionally, the company's underlying earnings, known as EBITDA, rose by 10% to US$80.3 million, boasting an impressive EBITDA margin of 48%.
Plus500 attributes its strong performance to the successful execution of its strategic plan, which has centred on acquiring higher-value customers, expanding geographically, and innovating its product offerings.
"The solid performance in soft markets is in line with market expectations, and we doubt consensus estimates will change much," said Jefferies.
"Strategic progress is welcome and we look forward to more positive news from Japan and the USA in particular."
The American bank repeated its 'buy' advice and £23 a share price target. At 9.53 am, the shares were changing hands for £14.04, up 97p.