Plus500 Ltd (LSE:PLUS) has lifted full-year revenue and profits guidance again after making further progress in the third quarter of 2021.
Despite more stable market conditions – market volatility is preferred by trading platform operators such as Plus500 – the company said it delivered further positive momentum in the third quarter. Consequently, the board now expects full-year revenue and underlying earnings (EBITDA) to be ahead of current compiled analysts' consensus forecasts, which were recently increased following the company's half-year results, published on 17 August.
“This positive momentum was highlighted by the consistent strength of Customer Income, a key underlying growth metric for Plus500, which has supported a strong revenue performance during the year to date,” the company said.
The company said it is continuing to make progress in accessing additional growth opportunities through further organic investment and by targeting potential bolt-on acquisitions.
The company’s third-quarter results are scheduled to be published on 25 October.
Peel Hunt noted that the consensus EBITDA forecast stands at US$278mln, “bang in line with our estimate of US$280mln”.
“Overall, we find it a positive update driven by strong customer income, albeit new customer growth is likely to have continued to slow following the trend in 2Q. The stock is now trading on c.8x current year earnings, and we believe sustained progress is likely to remain hindered by lack of visibility on future earnings forecasts,” it added.