Plus500 Distribution to Shareholders

by Warren Seah

Plus500 recently revealed its plans to distribute $175.0 million to shareholders following a remarkable performance in the last year, driven by a robust second-half performance.

Financial Highlights

  • Pretax Profit: The online-trading platform reported a pretax profit of $336.2 million for the year ended Dec. 31, compared to $474.3 million in the previous year.
  • EBITDA: Earnings before interest, taxes, depreciation, and amortization stood at $340.5 million, down from $453.8 million, but surpassing consensus estimates of $299.8 million. The EBITDA margin decreased from 55% to 47%.
  • Revenue: Despite a drop in revenue to $726.2 million, exceeding consensus forecasts of $645.2 million, the company performed well compared to the previous year’s revenue of $832.6 million.

Business Growth

The U.S. futures business of Plus500 demonstrated significant progress with growth in new customers and revenue across both institutional and retail segments.

Second-Half Performance

During the latter half of the year, Plus500 saw a revenue of $357.7 million, an improvement from $321.2 million in the first half. EBITDA for the same period also rose to $166.4 million compared to $148.5 million previously.

Company’s 2024 Performance Expectations

The board anticipates that in 2024, the company’s performance will align with market expectations. Projections include revenue reaching $653.8 million and Ebitda at $287.5 million. These figures highlight the company’s strong market position, enhanced customer relationships, and successful expansion initiatives in the U.S., Japan, and the United Arab Emirates markets.

Financial Plans and Dividend Declaration

Upon the completion of the current share buyback program, the company intends to initiate a new $100.0 million buyback program. Additionally, a dividend payout of $75.0 million is planned, along with the announcement of a final dividend of 39.11 cents per share and a special dividend of 55.51 cents per share.

Future Growth Opportunities

Looking ahead, the company is well-positioned to capitalize on growth opportunities within its end markets in the medium term. The board emphasizes the company’s robust business model, solid financial foundation, and strategic capital allocation approach. By focusing on sustainability and investing in infrastructure services in the U.S. futures market, the group aims to drive revenue growth.

Current Market Performance

As of 0820 GMT, shares are trading up by 0.8 pence, a 3.31% increase, reaching 23.8 pence. Over the past twelve months, shares have seen a 12.4% climb.

You may also like

Leave a Comment