viewPlus500 Ltd

Plus500 higher as it unveils share buyback after blockbuster performance in first half

The spread-betting group reported unprecedented levels of new and active customers during the first six months of 2020, with client deposits jumping 254% to US$1.6bn

Plus500 Ltd - Plus500 unveils share buyback after market volatility drives blockbuster performance in first half

Plus500 Ltd (LON:PLUS) has unveiled plans to buy back around US$67.5mln of its own shares on the open market after reporting what it said was an “outstanding performance” in its first half.

The online contracts for difference (CFDs) broker said the buyback programme will run from Tuesday, August 11, 2020, to February 28, 2021, or until the company announces its full-year results for 2020.

READ: Plus500 to sponsor top Polish football club

Plus500’s decision followed a strong showing in the six months ended June 30, 2020, with earnings (EBITDA) soaring 452% to US$361.8mln while revenues surged 281% to US$564.2mln, driven by what the company said was “heightened volatility in unprecedented market conditions” as markets were roiled by the effects of the coronavirus pandemic.

The firm also reported unprecedented levels of new and active customers, with client deposits jumping by 254% to US$1.6bn in the period.

The blockbuster performance also made for a bumper interim dividend, which the company hiked by 249% year-on-year to US$0.95 per share

Looking ahead, Plus500 said customer income so far in its second half was more than double that of the prior of year, supported by higher levels of active customers and market volatility,  although it expected the latter to “normalise” during the next six months.

Longer-term, the group said it is aiming to “deliver revenue growth and consistent levels of cash generation over the medium to long term”.

"Plus500 delivered an outstanding performance during the first half of the year, driven by the strength and differentiation of our proprietary technology, which enabled our business and our customers to benefit from the unprecedented market volatility and event-driven market conditions experienced during the period”, chief executive David Zruia said in the results statement.

"As well as our performance in the first half of 2020, driven by our continued delivery in customer acquisition and customer satisfaction, we have continued to invest in our technology, with a focus on driving its scale, efficiency and attractiveness for customers. This programme of continuous improvement and refinement ensures we will continue to deliver sustainable long term growth", he added.

The company's shares were up 2.8% at 1,288.5p in mid-morning trading on Tuesday.

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Quick facts: Plus500 Ltd

Price: 1533.5 GBX

Market: LSE
Market Cap: £1.61 billion

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