Plus500 Ltd (LSE:PLUS), the trading platform operator, said it has made a positive start to 2022.
In its results statement covering 2021, the fintech said last year was “an outstanding year of positive operational and financial momentum” with excellent performance across all key metrics.
That being said, revenue was down 18% at US$718.7mln from US$872.5mln the year before while underlying earnings (EBITDA) were 25% lower at US$387.1mln compared to US$515.9mln in 2020. The comparisons look a lot more favourable compared to pre-pandemic 2019, however, with revenue up 103% and EBITDA 101% higher.
The fourth quarter saw revenue surge 75% to US$161.1mln from US$91.9mln the year before, while EBITDA was 256% higher at US$70.9mln compared to EBITDA of US$19.9mln in the final quarter of 2020.
The number of new customers taken on board in 2021 dropped by a third to 196,336 from the 294,728 who signed up in 2020 and the number of active customers fell 6% to 4-7,734 from 434,296 the year before.
The average revenue per user dived 12% to US$1,764 from the previous year’s US$2,009.
The company declared a final dividend of 37.77 cents and a special dividend of 22.18 cents; it also announced a new share repurchase programme of US$55mln.
"Plus500 delivered another excellent operational and financial performance in 2021 and we made significant progress with our strategic roadmap to develop our position as a leading global multi-asset fintech group,” declared David Zruia, the chief executive officer of Plus500.
"Our future growth will be delivered through continued development of our technology, particularly in relation to driving customer retention, successfully obtaining new operating licenses and launching new products. These growth opportunities will be achieved by continued organic investments in our business and through additional acquisitions.
"With the group having further strengthened its strategic position during 2021, and with a positive start to the new financial year, the board continues to expect that Plus500 will deliver sustainable growth over the medium to long term,” he added.
'The meteoric rise in online trading which began during the early days of the pandemic is showing signs of slowing down, as Israeli trading platform provider Plus500 sees FY21 profits slip," said Richard Sloss at research house for hire, Edison Group.
"The group’s acquisition of Cunningham Commodities and Cunningham Trading Systems earlier in the year was Plus500’s first move into the US futures and options market, highlighting its ambitions to expand its product offering and transition into a global multi-asset fintech group. Recent favourable tax rate changes in Israel have augmented Plus500’s coffers and a cash balance of US$749mln leaves the door open for further potential acquisitions in future," he added.
"While top-line figures for FY21 show a waning in financial performance compared to 2020, the group’s enlarged customer base and substantial cash balance suggest a healthy outlook for Plus500. With its recent acquisitions ensuring further growth potential in the US futures and options market and extensive buyback programmes and dividend payouts in 2022, shareholders should remain upbeat," Sloss suggested.
Shares in Plus500 were 4.5% lower at 1,452.00p in late morning trading.
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