Plus500 posts preliminary growth figures for 2016

Plus500 has revealed a record full-year financial performance in a preliminary unaudited results posting for the 12 months to December 31, 2016.

Preliminary revenue for the year stands at $327.9 million (€307 million), up by 19% on the $275.6 million generated in the previous year.

Earnings before interest, tax, depreciation and amortisation (EBTIDA) looks set to come in at $151 million, an increase of 14% on 2015, while net profit should rise by 21% year-on-year to $117.2 million.

Plus500 also said that it expects earnings per share to improve by 21% to $1.02, while cash generated from operations is set to jump by 20% to $153.3 million.

Asaf Elimelech, chief executive of Plus500, said: “Our continued focus on serving our customers' trading needs through product innovation and technology leadership, combined with our marketing activity, has led to strong new customer sign-ups, reducing churn in H2 2016 and increased customer activity.

“Plus500 retains operating licences and is regulated in the UK, Australia, Cyprus, New Zealand and Israel providing a strong foundation in an ever evolving regulatory environment.

“We will make the necessary changes to comply with the regulatory changes that were announced during 2016 and any future requirements, as certain regulators continue to go through a consultation and implementation process, proposals to reduce leverage are expected to have the greatest financial effect.

“We enter 2017 confident we can continue to develop our business and expand into new markets whilst successfully incorporating regulatory changes with the minimum of disruption.

“Our strong balance sheet, cash generative business model, geographic diversification and competitive market position are expected to enable us to provide good shareholder returns despite continuing short-term regulatory uncertainty.”

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