Shares in Plus500 Limited (LON:PLUS) shot up as the trading platform operator said 2016 had been a record year.
Revenues rose 19% to US$327.9mln from US$275.6mln the year before. Average revenue per user improved 4% to US$2,103 in 2016 from US$2,019 in 2015.
The number of new customers in 2016 rose 23% to 104,432 from 84,858 the year before, while the number of active customers grew 14% to 155,956 from 136,540 the previous year.
The company said 2017 had seen a continuing increase in the number of new customers.
Underlying earnings (EBITDA) climbed 14% to US$151.0mln from US$132.9mln in 2015, but the EBITDA margin ebbed to 46.0% from 48.2%.
Profit before tax climbed to US$151.9mln from US$127.9mln the year before.
It was a turbulent year for the company in which it came under the eye of the industry watchdog and the industry as a whole was buffeted by proposed regulatory changes.
The company, which allows retail investors to trade highly leveraged instruments called certificates for difference, said it is still assessing the likely impact of regulatory changes, but said its “highly flexible business model” is expected to partially mitigate any impact.
- Read Plus500 recovers after UK watchdog intervention ends
- Read Spreadbet firms: Where do we go from here?
“Our continued focus on serving our customers' trading needs through product innovation and technology leadership, combined with our marketing activity, has led to strong new customer sign ups, reducing churn in H2 2016 and increased customer activity,” said Asaf Elimelech, chief executive of Plus500.
“We will make the necessary changes to comply with the regulatory changes that were announced during 2016 and any future requirements, as certain regulators continue to go through a consultation and implementation process.
“Proposals to reduce leverage are expected to have the greatest financial effect. In this regard the UK regulatory proposals have the most material impact and we note that approximately 20% of our revenues currently go through the UK regulated subsidiary. At the same time, we have a highly flexible business model and a lean cost structure to help mitigate the impact of regulatory changes on our financial performance.
“Overall, we anticipate that the industry will consolidate around a smaller number of larger participants, of which we believe Plus500 will be amongst the leaders,” Elimelech predicted.
In total, the group paid out 88.52 cents in dividends during the year, including special dividends, up from 84.05 cents the year before.
Shares shot up by more than 8% to 459.5p and are up 20% year-to-date.