Plus500 (LON: PLUS) has provided a trading update on Monday, stating that the Board of the company is expecting the broker’s revenue and EBITDA for fiscal 2022 to be 'significantly' stronger than the market expectations.
This anticipation was boosted by the continued 'very strong' demand for its services in the second quarter of 2022.
Earlier, Finance Magnates reported that the revenue of the broker in Q1 was strengthened by 68 percent in the previous quarter and 33 percent in the first quarter of the previous year. Additionally, it onboarded 33,740 new customers that quarter, ending with 176,642 active traders.
According to the current consensus estimates of analysts, the London-listed broker is anticipated to generate $628.4 million as revenue with an EBITDA of $290.5 million.
“The Group's strong performance so far in FY 2022 has also been driven by the development of new proprietary technologies and product offerings, which will deliver growth and drive expansion and diversification across new geographies,” the broker stated.
However, 2021 was a bit dull for the broker, despite reporting strong numbers for the last quarter of the year. Overall, its revenue for the year came in at $718.7 million in revenue and $387.1 million in EBITDA, which were lower than the previous year's figures.
Strategic Improvements
Meanwhile, the Israeli broker made some crucial strategic moves that gave a boost to its business. It entered the Japanese trading market with local acquisition and significantly strengthened its ongoing share buyback program.
“Plus500 will continue to build its strategic position as a global multi-asset fintech group, through organic investments and by actively targeting acquisitions, to help deliver sustainable growth over the medium to long term,” the broker added.
“Plus500's financial position remains very robust and the Group continues to be debt-free, with healthy cash balances driven by consistently high levels of cash generation.”
