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Plus500 cites new and active customers as revenue grows

| By iGB Editorial Team
Plus500 has cited the impact of new customers, as well as the number of active customers accessing its services, as the main reasons behind a year-on-year jump in revenue during the 12 months through to December 31, 2015.

Plus500 has cited the impact of new customers, as well as the number of active customers accessing its services, as the main reasons behind a year-on-year jump in revenue during the 12 months through to December 31, 2015.

Full-year revenue amounted to $275.6 million (€247.8 million), an increase of 20% on the $228.9 million posted in the previous year.

The online trading platform provider put this increase down to a record year of customer growth, with active customers up 29% year-on-year to 136,540, while the number of new customers jumped 28% to 84,858.

However, despite these increases, Plus500 did note that earnings before interest, tax, depreciation and amortisation (EBITDA) fell from $145.4 million to $132.9 million, while net profit was also down from $102.5 million to $96.6 million.

Earnings per share also dropped from $0.89 in the previous year to $0.84 in the most recent 12-month period.

The company was able to report that by the end of the year, net cash amounted to $156.5 million, up from $140.2 million in the previous year.

Reflecting on the results, chief executive Gal Haber said: “Plus500 had a record number of both new customers and active customers in 2015.

“Whilst marketing expenses are recognised and paid for when incurred, these new customers are expected to contribute to significant revenue growth and a higher EBITDA margin in 2016.

“We enter 2016 with more high-value customers, an enhanced trading platform, more robust processes, a stronger brand and more routes to market, supported by a strong balance sheet.”

Haber also said that the company has been able to move away from concerns over its regulatory status, having started accepting customers in the UK again last month.

“We made significant progress enhancing our regulatory compliance,” Haber said.

“We were pleased that Plus500UK began accepting new UK customers again in January 2016 and we are not subject to any regulatory restrictions in each of our regulated entities.”

Related article: Playtech terminates merger agreement with Plus500

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