TOP NEWS: Plus500 Quarterly Revenue Sharply Lower On Subdued Markets

LONDON (Alliance News) - Online trading platform Plus500 Ltd said Friday its first quarter ...

Alliance News 12 April, 2019 | 8:00AM
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LONDON (Alliance News) - Online trading platform Plus500 Ltd said Friday its first quarter revenue fell sharply on "subdued" financial markets.

In the three months to March 31, Plus500 recorded revenue of USD53.9 million, far lower than the USD297.3 million reported in the first quarter of 2018 and 65% lower than the USD154.8 million reported in the previous quarter.

The company's average revenue per user fell 60% year-on-year to USD550 from USD1,363 and 64% compared to the previous quarter where Plus500 reported average revenue per user of USD1,523.

"Given the level of global political and economic news, financial markets were surprisingly subdued in the period, which reduced the number of trading opportunities for customers. While revenue in the quarter was disappointing, we have much to be encouraged about," said Chief Executive Asaf Elimelech.

The contracts-for-difference trader reported a 9.8% rise in new customer customers of 21,306 compared to 19,405 in the previous quarter. In the first quarter of 2018, Plus500 reported 72,960 new customers, representing a 71% decrease in the first quarter of 2019.

Plus500's number of active customers, decreased 3.7% to 97,921 from 101,634 compared to the previous quarter. Compared to the corresponding quarter last year, Plus500's active customers are down 55%.

The company said financial markets in the period "provided limited" trading opportunities, adding: "It is impossible to predict market conditions for the rest of the year and therefore too early to draw conclusions about the full year outcome based on the group's performance over the first three months."

Plus500 said operational performance and new customer acquisition remained "robust" in the period.

Elimelech added: "Given recent regulatory changes, it is imperative to attract, engage and retain valuable customers and the company is working on a number of initiatives to extend its reach and further improve the customer experience and the service offered."

Plus500's average user acquisition cost in the first quarter was USD1,230, 17% behind the previous quarter's reported figure of USD1,489 but more than triple the USD502 seen the year before.

Shares in Plus500 ended Thursday at 719.40 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Plus500 Ltd 1,328.50 GBX -3.06 -

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