Plus500 Sees 75% Jump in Q4 2021 Revenue, Kicks Off $55M Share Buyback

Plus500 (LON: PLUS) reported its unaudited financials for the fourth quarter of 2021, reporting revenue of $161.1 million, which is 75 percent higher than the previous year. However, the broker witnessed an 18 percent slide in its overall yearly revenue.

The final quarter of last year turned out to be very strong for the broker as its EBITDA came in at $70.9 million, which was 256 percent higher year-over-year. Moreover, the margin doubled to reach 44 percent.

The number of new customers onboarded between October and December dropped down to 34 percent to 33,187, with the total number of active customers at 171,922, which is 20 percent decrease on a yearly basis. Despite this, the average revenue per user strengthened by 119 percent to reach $937.

Coming to the yearly numbers, the Israeli broker closed the year with $718.7 million in revenue and $387.1 million in EBITDA, which is 25 percent lower. But, both these figures doubled up when compared to the pre-pandemic figure of 2019. Additionally, the EBITDA margin remained strong at 54 percent.

Net profit for the year came in at $310.6 million, compared to $500.1 million in 2020 and $151.7 million in 2019. The basic earnings per share stood at $3.06.

“Plus500 delivered another excellent operational and financial performance in 2021 and we made significant progress with our strategic roadmap to develop our position as a leading global multi-asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term group,” David Zruia, the CEO at Plus500, said.

"With the Group having further strengthened its strategic position during 2021, and with a positive start to the new financial year, the Board continues to expect that Plus500 will deliver sustainable growth over the medium to long term."

Share Buyback Continues

Further, Plus500 expanded its share buyback program again, deciding to repurchase shares worth up to $55 million. This will include a special share buyback program of $29.8 million to benefit from the Israeli tax rate changes. The new buyback program will run throughout the year, ending on December 31, 2022.

Meanwhile, the broker gained a new regulatory license in Estonia recently.