Plus500 Ltd (LSE:PLUS) reported a slower final quarter for revenue and earnings at the end of last year, but reassured that results were in line with expectations and hinted at further shareholder returns from its strong cash balance.
Modest financial progress was revealed for the past year, with the online CFD provider saying it had a year-end cash balance of roughly $900 million and hailing strategic moves into the US and Saudi Arabia.
The FTSE 250-listed company posted a year-end update showing revenue of around $768 million for 2024, up 6% from the previous year, leading to underlying earnings (EBITDA) of roughly $342 million, which was only $1.5 million higher than 2023.
This suggested EBITDA was around $75.9 million, down from $82.2 million in the preceding quarter.
It added more than 36,000 new customers in the fourth quarter, up from 24,922 in the third quarter, 45% higher than a year earlier and the strongest new customer additions since the first half of 2021. No financial guidance was given for the year ahead, but Plus flagged the "significant milestone" in the first days of 2025 in obtaining a clearing membership with ICE Clear US, opening the door to various derivatives products in the US.
Plus said this would bring benefits including widening its product range, reducing costs and "bringing new holistic solutions to institutional customers across multiple exchanges".
Overall for the year ahead, the board expressed confidence about making "strong financial and strategic progress alongside delivering further shareholder returns".
Analysts at house broker Panmure Liberum said trading was in line with expectations, with revenues "meaningfully ahead" of the consensus estimate of $728.8 million, though EBITDA was broadly flat on the prior year but with slightly lower margins than in the previous three quarters.
The shares rose initially before falling 1% to 2,611.35p by mid morning, with a 52-week gain of over 40%.
** Update: Adds broker comment and share price **