Plus500 (LON: PLUS) released a year-end trading update on Tuesday, revealing that the group revenue jumped to $832 million in the financial year 2022, more than 15.7 percent year-over-year. Additionally, the EBITDA of the group increased to about $454 million from $387.1 million.
Plus500 Meets Revenue Target
The figures aligned with the Israeli company's expectations to comfortably surpass revenue targets for the financial year. Though its revenue in the first two quarters of FY22 jumped 68 percent each, the third quarter witnessed challenges with an 8 percent revenue drop. For the year's final quarter, the revenue came in at $126.1 million compared to $161.1 million in the previous financial year.
"The Group delivered an excellent operational and financial performance during FY 2022, in line with market expectations, following several upgrades to market expectations related to Plus500's financial performance during the year," the company stated.
"This performance was achieved despite lower levels of activity across financial markets towards the end of the year, which were affected as expected by the 2022 FIFA World Cup, and consistent with previous World Cup tournaments."
Check out the recent London Summit session on "What CFDs Traders Value Most & How They Choose Their Brokers."
Customer Metrics of Plus500
The London-listed broker has detailed that the customer income in the year dropped to approximately $639 million from $702.8 million in the previous year, contributing to the yearly revenue growth. However, the trading platform added about 106,000 new clients last year, dropping from 196,336 in FY21. It ended the year with an active customer base of approximately 280,000, which is a drop from 407,374 in the previous year.
Meanwhile, the company's balance sheet remains strong, with no debt or loans. In addition, its cash balance increased to $900 million from $749.5 million at the end of December 2021.
"Plus500's strong performance during the year was fundamentally driven by the Group's proven business model, its market-leading proprietary technology and its on-going ability to attract and retain higher value, long term customers," added the company, which is also diversifying "revenue streams, geographic footprint and business model."
An advertisement of Plus500
The brokerage group is now focusing on its growth opportunities in the United States, which is a market it entered with the acquisition of Cunningham in 2021. It launched a US-specific proprietary futures trading platform in Q3 2022. Last October, it ended a 7-year deal with the Spanish football club, Atletico Madrid, to sign a 4-year sponsorship deal with Chicago Bulls, a US-based professional basketball team.
