Plus500 Ltd (LON:PLUS) saw its shares jump higher today after the online trading firm reported record first half results, significantly ahead of market expectations, driven by solid increases in revenue and new clients.
For the six-months ending June 30, 2017, the AIM-listed group’s underlying earnings (EBITDA) doubled to US$118.5mln, as its revenue increased by 19% year-on-year to US$188.4mln.
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The Contracts for Difference (CFD) provider said the number of its active clients increased by 8% year-on-year in the first-half to 112,317, up from 104,119 over the same period in 2016.
That new customer growth accelerated significantly in the second quarter, increasing by 43% quarter-on-quarter to 31,671, compared to a 22,210 rise in the first quarter.
The group also saw its Average Revenue Per User (ARPU) improve to US$1,678, up 10% from the $1,525 seen a year earlier.
CEO expects momentum to carry forward into 2018
Asaf Elimelech, Plus 500’s chief executive officer said: “Overall, our expectations are that with the continuance of the current momentum we will deliver strong year-on-year growth in 2017, which we expect to carry forward into 2018.”
In early trading, Plus 500 shares were up over 9% to 717p.
In an initial note to clients, analysts at Liberum Capital hiked their target price for Plus 500 shares to 992p, up from 628p previously, and reiterated a ‘buy’ rating on the stock.
They said: “We remain cognizant of the regulatory challenges facing the industry, which we acknowledge may put our forecasts from CY18 at risk.
“However, we believe Plus500 is continuing to prove very capable of adapting to changes in its markets.”