Plus500 Q3 earnings jump amid market volatility, FY seen in line

Contracts-for-difference platform Plus500 reported a jump in third-quarter revenue and earnings on Tuesday amid market volatility, and said results for the full year are set to be line with market expectations.

In the three months to 30 September, revenue rose 96% from the same quarter a year ago to $216.4m, with earnings before interest, tax, depreciation and amortisation up 91% at $134.2m.

The number of customers grew 90% to 46,238 while the number of active customers increased 78% to 197,976.

The company said the rise in revenue was driven by "unprecedented" market conditions which continue to provide trading opportunities for customers, "and due to the high quality, resilience and capability of Plus500's technology in managing the consequent elevated platform usage".

Customer income during the quarter was the second highest quarterly level in Plus500's history, although reduced from the record peak levels achieved in the second quarter. "This gradual reduction from peak levels has continued into Q4 2020," it said.

The company said group revenue and EBITDA for FY 2020 are expected to be in line with current consensus forecasts of $829.2m and $520.5m, respectively.

Chief executive officer David Zruia said: "Plus500 has delivered an excellent performance during Q3 2020, building on the positive momentum already achieved in the first half of the year. This performance has been driven by the quality and differentiation of our proprietary technology, which has enabled our business to consistently support our customers in these unprecedented market conditions.

"Given Plus500's exceptional performance this year to date, and with macroeconomic and sector-specific news flow continuing to provide significant trading opportunities for our customers, we remain very confident about the outlook for the business."