REG - Plus500 Ltd - Plus500 H1 2024 Interim Results
19/08/2024 07:00
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RNS Number : 8407A Plus500 Limited 19 August 2024
19 August 2024
Plus500 Ltd.
("Plus500", the "Company" and, together with its subsidiaries, the "Group")
Interim results for the six-month period ended 30 June 2024
FY 2024 results expected to be ahead of current market expectations 1
(#_ftn1)
Significant additional shareholder returns of $185.5m announced today
Strong financial and operational results for H1 2024
Plus500, a global multi-asset fintech group operating proprietary
technology-based trading platforms, today announces its interim results for
the six-month period ended 30 June 2024 2 (#_ftn2) .
David Zruia, Chief Executive Officer of Plus500, commented:
"Plus500 has delivered strategic, operational and financial progress during H1
2024 and I am proud of what we have achieved. We continue to be guided by our
strategic ambitions - to expand into new markets, develop new products and
deepen engagement with our customers.
We delivered growth in revenue and EBITDA, continued to expand our geographic
footprint, developed innovative new products and, as a result, saw an increase
in new and active customer numbers year-on-year. Plus500 remains strategically
well positioned to capitalise on both short-term market conditions and the
medium-term growth trends in our end markets. The proprietary nature of our
technology is what differentiates Plus500, creating an exceptional experience
for our customers.
Thanks to our strong fundamentals and highly robust financial position, we are
delighted to announce today significant additional shareholder returns of
$185.5m and we expect FY 2024 results to be ahead of current market
expectations."
Key highlights:
- Excellent H1 2024 performance with continued financial, operational
and strategic progress
- Growth delivered across major financial and operational metrics
including revenue, EBITDA 3 (#_ftn3) , Basic Earnings Per Share ("EPS") and
customer activity
- Strong financial position with Group's own cash balances exceeding
$1bn for the first time
- Significant additional shareholder returns of $185.5m announced today,
comprising share buybacks of $110.0m and total dividends of $75.5m
- Continued excellent progress in the strategically important US market,
with both the B2B (Institutional) and B2C (Retail) businesses performing
strongly
- FY 2024 results expected to be ahead of current market expectations
Financial KPIs (unaudited):
H1 2024 H1 2023 Change % Q2 2024 Q2 2023 Change %
Revenue $398.2m $368.5m 8% $182.6m $160.6m 14%
EBITDA $183.9m $174.1m 6% $81.3m $73.2m 11%
EBITDA Margin 46% 47% (2%) 45% 46% (2%)
- Group revenue increased by 8% year-on-year to $398.2m (H1 2023:
$368.5m), comprising trading income of $369.1m (H1 2023: $346.2m) and interest
income of $29.1m (H1 2023: $22.3m)
- Customer Income(( 4 (#_ftn4) )), a key measure of the Group's
underlying performance, increased by 8% to $329.4m (H1 2023: $304.3m), driven
by stronger customer acquisition and the increased trading activity of
existing customers during the period
- EBITDA increased by 6% to $183.9m (H1 2023: $174.1m), equating to an
EBITDA margin of 46% (H1 2023: 47%)
- Basic EPS of $1.90 represents growth year-on-year of 18% (H1 2023:
$1.61)
- Cash balances amounted to $1,007.2m as of 30 June 2024 (30 June 2023:
$849.0m; 31 December 2023: $906.7m) marking the first time that the Group's
own cash resources have exceeded $1bn, highlighting the highly cash generative
nature of Plus500's business model and its robust financial position
Significant shareholder returns of $185.5m announced today, comprising total
share buybacks of $110.0m and total dividends of $75.5m
- Today's announcement of $185.5m of shareholder returns, combined with
the $175.0m announced earlier this year, takes Plus500's total shareholder
returns in FY 2024 to date to $360.5m. These have been enabled by the Group's
robust financial position, cash generative business model and the confidence
of the Board of Directors of Plus500 (the "Board") in the outlook for the
Group
- Since the Company's IPO on the London Stock Exchange in 2013, Plus500
has distributed $2.3bn in shareholder returns, including those declared today,
positioning it as the best performing company on the FTSE All-Share on a total
return basis over that time frame 5 (#_ftn5)
- Total dividends announced today of $75.5m ($1.0000 per share),
comprising an interim dividend of $35.4m ($0.4686 per share) and a special
dividend of $40.1m ($0.5314 per share)
- Total share buyback programmes announced today of $110.0m, comprising
an interim buyback programme of $35.4m and a special buyback programme of
$74.6m, both of which will commence following completion of the existing
programme, which was announced in February 2024
Operational overview
Plus500 continued to diversify and strengthen its business during the first
half by focusing on deepening customer relationships, developing its retention
technologies and improving its existing operations.
The Group delivered strong operational results, with an increase in new and
active customer numbers year-on-year, enabled by its proprietary marketing and
customer acquisition technologies. The Group enhanced its operations in the
strategically important and highly attractive US futures market and its US
businesses continued to excel. The Group also launched 'Plus500 Cosmos', a new
innovative client portal, and the B2C (Retail) business acquired record
numbers of new customers. In Japan, another important new market for the
Group, Plus500 launched a new offering for Japanese retail customers of
'knock-out' options, a popular local trading product.
Plus500's increasingly diversified offering and intuitive trading platforms
enable customers to access a wide variety of products, services and features
across multiple markets.
Operational KPIs (unaudited):
H1 2024 H1 2023 Change % Q2 2024 Q2 2023 Change %
Active Customers(( 6 (#_ftn6) )) 175,909 175,762 0% 123,803 122,833 1%
New Customers 7 (#_ftn7) 56,759 50,449 13% 24,810 22,248 12%
ARPU(( 8 (#_ftn8) )) $2,264 $2,097 8% $1,475 $1,308 13%
AUAC 9 (#_ftn9) $1,489 $1,490 0% $1,708 $1,627 5%
- Strong customer retention performance, with 64% of OTC revenue
generated from customers trading with Plus500 for more than three years (H1
2023: 55%), demonstrating the depth of customer relationships, increased
customer loyalty and the successful nature of Plus500's enhanced engagement
efforts supported by its retention technologies
- Average deposit per Active Customer increased by 30% year-on-year to
approximately $8,400 in H1 2024 (H1 2023: approximately $6,450), reflecting
the Group's ongoing focus on attracting and retaining higher value customers
- Aggregate customer deposits in H1 2024 increased by more than 30% and
stood at $1.5bn (H1 2023: $1.1bn)
- Strong ARPU of $2,264 during H1 2024 (H1 2023: $2,097), driven by the
Group's intuitive and robust trading platforms and diverse product offering
Strategic highlights
The Group's strategic expansion of its geographic footprint and launch of new
products and services has contributed to the further diversification of its
revenue streams in recent years. The Group now has over 27 million customers
globally registered on its platforms.
- Great progress made in the US during the period, as both the B2B
(Institutional) and B2C (Retail) businesses performed extremely well,
onboarding new customers and expanding their operations
- The B2B (Institutional) futures business launched 'Plus500 Cosmos', a
new innovative client portal
- Significant growth in segregated client funds within the futures
business, with approximately $300m as of 30 June 2024
- In Japan, Plus500 launched 'knock-out' options for retail customers, a
popular local trading product
- Plus500's operations in the UAE, launched in 2023 following the
receipt of a local regulatory licence, continued to improve during H1 2024,
resulting in increased brand awareness and higher levels of customer
acquisition
- The Group secured a clearing membership of Eurex Clearing AG, the
clearing house for the entire suite of products traded at Eurex Exchange
Plus500 is well positioned to seize the substantial market opportunities
ahead, with FY 2024 results anticipated to be ahead of current market
expectations
The Board remains confident about the Group's performance for FY 2024 and
beyond, driven by the strength of its position in growing end markets and its
successful growth efforts in the US, Japan and UAE markets. Plus500 has made
material progress against its strategic roadmap to expand into new markets,
develop and launch new products, and deepen its relationships with customers,
all of which will continue to underpin future performance and the Group's
compounding value creation. As a result, the Board anticipates that Plus500's
revenue and EBITDA for the current financial year will be ahead of current
market expectations.
Looking further ahead, the opportunity for Plus500 is significant as it seeks
to improve the activation, retention and monetisation of its over 27 million
registered customers globally. Its differentiated technology, strong balance
sheet, growing scale and agile organisational culture leave it strongly
positioned to deliver value for its stakeholders.
Analyst and investor webcast
Plus500 will host an audiocast for investors and analysts at 9.00 a.m. UK time
today, which can be accessed via the following link:
https://www.investis-live.com/plus500/6698e28df6c549120002a72c/vwet
(https://www.investis-live.com/plus500/6698e28df6c549120002a72c/vwet) . The
audiocast can also be accessed by dialling +44 800 358 1035 and using the
following access code: 298406.
The presentation materials and a recording of the audiocast will be available
in due course at https://investors.plus500.com/Reports/Presentation
(https://investors.plus500.com/Reports/Presentation) .
For further details:
Plus500 Ltd.
Elad Even-Chen, Chief Financial Officer +972 4 8189503
Owen Jones, Head of Investor Relations +44 (0) 7551 654208
ir@Plus500.com (mailto:ir@Plus500.com)
DGA Group
James Melville-Ross +44 (0)20 7664 5095
James Styles Plus500@dgagroup.com (mailto:Plus500@dgagroup.com)
Methuselah Tanyanyiwa
About Plus500
Plus500 is a global multi-asset fintech group operating proprietary
technology-based trading platforms. Plus500 offers customers a range of
trading products, including OTC ("Over-the-Counter" products, namely Contracts
for Difference (CFDs)), share dealing, as well as futures and options on
futures.
The Group retains operating licences and is regulated in the United Kingdom,
Australia, Cyprus, Israel, New Zealand, South Africa, Singapore, the
Seychelles, the United States, Estonia, Japan, the UAE and the Bahamas and
through its OTC product portfolio, offers more than 2,500 different underlying
global financial instruments, comprising equities, indices, commodities,
options, ETFs, foreign exchange and cryptocurrencies. Customers of the Group
can trade its OTC products in more than 60 countries and in 30 languages.
Plus500's trading platforms are accessible from multiple operating systems
(iOS, Android and Windows) and web browsers. Customer care is, and has always
been, integral to Plus500. As such, OTC customers cannot be subject to
negative balances. A free demo account is available on an unlimited basis for
OTC trading platform users and sophisticated risk management tools are
provided free of charge to manage leveraged exposure, and stop losses to help
customers protect profits, while limiting capital losses.
Plus500 was admitted to trading on the London Stock Exchange (LON: PLUS) on 24
July 2013, is admitted to the Equity Shares in Commercial Companies" ("ESCC")
Category of the Official List and is a constituent of the FTSE 250 Index.
Website: www.plus500.com (http://www.plus500.com) .
The information contained within this announcement is deemed by the Company
to constitute inside information as stipulated under the Market Abuse
Regulation ("MAR"). Upon the publication of this announcement via Regulatory
Information Service ("RIS"), this inside information is now considered to be
in the public domain.
Forward looking statements
This announcement contains statements that are or may be forward-looking
statements. All statements other than statements of historical facts included
in this announcement may be forward-looking statements, including statements
that relate to the Group's future prospects, developments and strategies. The
Company does not accept any responsibility for the accuracy or completeness of
any information reported by the press or other media, nor the fairness or
appropriateness of any forecasts, views or opinions express by the press or
other media regarding the Group. The Company makes no representation as to the
appropriateness, accuracy, completeness or reliability of any such information
or publication.
Forward-looking statements are identified by their use of terms and phrases
such as "believe", "targets", "expects", "aim", "anticipate", "project",
"would", "could", "envisage", "estimate", "intend", "may", "plan", "will" or
the negative of those, variations or comparable expressions, including
references to assumptions. The forward-looking statements in this announcement
are based on current expectations and are subject to known and unknown risks
and uncertainties that could cause actual results, performance and
achievements to differ materially from any results, performance or
achievements expressed or implied by such forward-looking statements. Factors
that may cause actual results to differ materially from those expressed or
implied by such forward looking statements include, but are not limited to,
those described in the Risk Management Framework section of the Company's most
recent Annual Report. These forward-looking statements are based on numerous
assumptions regarding the present and future business strategies of the Group
and the environment in which it is and will operate in the future. All
subsequent oral or written forward-looking statements attributed to the
Company or any persons acting on its behalf are expressly qualified in their
entirety by the cautionary statement above. Each forward-looking statement
speaks only as of the date of this announcement. Except as required by law,
regulatory requirement, the Listing Rules and the Disclosure Guidance and
Transparency Rules, neither the Company nor any other party intends to update
or revise these forward-looking statements, whether as a result of new
information, future events or otherwise.
Plus500 - Progressing strategic transformation into a diversified global
multi-asset fintech group
Plus500 offers a wide range of products, services and instruments across its
OTC, share dealing and futures verticals. It has more than 27 million
registered customers on its platforms in over 60 countries with services
available in 30 languages.
The Group operates with several competitive advantages, including its
proprietary technology, its portfolio of global regulatory licences, and its
robust financial position. Plus500's differentiated technology provides
customers with an enhanced user experience, including intuitive and robust
trading platforms resulting in greater customer retention.
Plus500 has a strategic roadmap against which it is delivering excellent
progress to innovate and deliver new products, enter new markets, and deepen
engagement with its customers.
Strong fundamentals and disciplined capital allocation driving growth and
compounding returns
The Group's market-leading technology platforms continue to underpin its
strong financial position and performance, delivering compounding shareholder
value and growth. The following pillars consistently enable Plus500 to excel
through:
- Attracting and retaining customers while putting great focus on
customer longevity, supported by Plus500's superior offering and retention
technologies
- Operating a flexible business model and strong cash generation - the
vast majority of the Group's expenses are variable rather than fixed,
facilitating an agile and optimised outcome across various market conditions.
As an example, Plus500 is able to deliver attractive margins within a narrow
range even when market conditions are less optimal, a significant
differentiator versus peers and one which enables the Group to execute, time
and again, against its strategic objectives
- Maintaining an attractive and disciplined capital allocation framework
- delivering a consistently high return on equity, which means the Group is
able not only to generate strong returns for its shareholders, but also to
manage its use of capital responsibly and efficiently
Review of H1 2024
During H1 2024, Plus500 once again delivered a strong set of strategic,
operational and financial results. This consistent delivery against its
strategic plan highlights the inherent strength, resilience and flexibility of
the Group's business model and its competitive advantages. The Group's
best-in-class, proprietary technology and the increasingly diversified nature
of its operations have enabled Plus500 to continue its evolution from a
business providing a single OTC-based product to a leading global multi-asset
fintech group.
Customer loyalty remained strong during H1 2024, with 88% of OTC revenue being
derived from customers trading with Plus500 for more than a year (H1 2023:
85%), 64% for more than three years (H1 2023: 55%) and 31% for more than five
years (H1 2023: 32%). This demonstrates the depth of customer relationships
and customer loyalty that continued to be enhanced using Plus500's retention
technologies.
For the first time, the Group held own cash balances on its balance sheet of
over $1bn as of 30 June 2024, placing the Group in an extremely strong
strategic position. It is able to invest in innovation and support growth,
both organically and through strategic bolt-on acquisitions. It also allows
Plus500 to enhance its offering for customers by accessing new markets and
adding new products, services and features.
In addition, Plus500's robust financial position enables it to deliver
attractive and sustainable returns to shareholders, through enhanced share
buybacks and dividends. Today, the Company has announced additional
shareholder returns of $185.5m comprising total share buybacks of $110.0m and
total dividends of $75.5m ($1.0000 per share).
Delivering successfully against the Group's strategic roadmap
During the first half of 2024, Plus500 built on the substantial progress made
in recent years to evolve into a diversified global fintech group.
The US futures businesses performed extremely well once again. Both the B2B
(Institutional) and B2C (Retail) businesses continued to perform strongly with
increased levels of onboarded customers and trades processed. The UAE
operation continued to expand and its contribution to the Group increased
year-on-year. The Group's investments in proprietary customer retention
technologies also continued to lead to improvements in monetisation,
activation and retention of its customers.
The US futures market represents a compelling multi-year growth opportunity
for Plus500
The Group continued to pursue major growth opportunities in the large and
growing US futures market during the period. This included the B2B
(Institutional) business increasing its network of Introducing Brokers (IBs)
and launching 'Plus500 Cosmos' for IBs. The B2C (Retail) business onboarded
record numbers of customers.
The B2B (Institutional) business added new institutional memberships and
launched a new customer portal
The Group is a provider of market infrastructure services, including
brokerage-execution and clearing services for institutional customers in the
futures and options on futures market.
During the second quarter of 2024, the Group launched 'Plus500 Cosmos', a new,
innovative client portal. It provides IBs and institutional customers with a
transparent and easy-to-use platform which has a variety of different
functions including position monitoring and collateral management services.
This innovation represents a significant step forward for customer service in
this market and its development has been made possible by Plus500's
market-leading technology and commitment to best-in-class operations and
customer service.
The B2B business held approximately $300m of segregated client funds as of 30
June 2024. This figure has grown significantly in recent years and reflects
the strategic presence the Group has established within the US B2B market in a
short period of time.
The Group also secured a clearing membership of Eurex Clearing AG, the
clearing house for the entire suite of products traded at Eurex Exchange. This
followed a primary membership with the Futures Industry Association (FIA)
secured in December 2023. Such memberships enable the Group to gather new
opportunities and to cater to additional customers, as well as to increase its
margins within the futures business.
The B2C (Retail) business performed extremely well during H1 2024
Plus500 launched 'Plus500 Futures', its proprietary and innovative futures
trading platform in the US in H2 2023 and it continued to gain excellent
traction with customers during the period.
The B2C (Retail) business continued to perform well during H1 2024, supported
by its unique 'omni-set solution' which allows customers to onboard, deposit
and trade through one platform. The business added a record number of new
customers during the period reflecting the strength of its platform and the
Group's marketing efforts supporting it.
Japan business continues to scale and added 'knock-out' options
The Group launched a localised trading platform for the Japanese retail
trading market in September 2023 with an initial focus on FX OTC pairings, and
during H1 2024 the platform continued to scale up. Recently, Plus500
strengthened its local offering with the launch of 'knock-out' options, a
popular product in this market, which enables Japanese retail customers to
tailor their trading strategies. This is a further example of Plus500's proven
ability to launch new products using its class-leading technology.
Plus500's proprietary technology - a key competitive advantage
At its core, Plus500 is a technology company, which has been developing its
own proprietary technology since its inception. The Group's robust financial
position and capital allocation policy allows it to invest in technology,
innovation and cutting-edge products for customers. During the period, Plus500
maintained this disciplined approach to technological investment in order to
attract, retain and deepen its relationships with customers, which ultimately
drives growth and value for all stakeholders.
The Group, with its ongoing investments in technology and people, will
continue to develop and scale up the significant latent customer base of over
27 million registered customers across its platforms worldwide. Also, new
technologies designed to improve retention, activation and monetisation
initiatives will continue to be introduced.
Ongoing delivery against operational KPIs
Across its key operational metrics, the Group registered a strong performance
in H1 2024, building on the cumulative progress of recent years and
underpinned by a constant focus on delivering exceptional customer service,
robust trading platforms and an intuitive user experience.
Plus500's strategic decision to focus on higher value customers in recent
years continued to yield positive results. In H1 2024, the average deposit per
Active Customer was approximately $8,400 (H1 2023: approximately $6,450) and,
in aggregate, customer deposits in H1 2024 were $1.5bn (H1 2023: $1.1bn).
The Group successfully onboarded 56,759 New Customers during H1 2024 (H1 2023:
50,449), including 24,810 in Q2 2024 (Q2 2023: 22,248). The Group's base of
Active Customers was 175,909 during H1 2024 (H1 2023: 175,762), including
123,803 in Q2 2024 (Q2 2023: 122,833).
Customer Churn 10 (#_ftn10) in H1 2024 was 25.0% (H1 2023: 29.6%), including
26.5% in Q2 2024 (Q2 2023: 26.6%).
Customer loyalty remained strong during H1 2024, with 88% of OTC revenue being
derived from customers trading with Plus500 for more than a year (H1 2023:
85%), 64% for more than three years (H1 2023: 55%) and 31% for more than five
years (H1 2023: 32%). This demonstrates the depth of customer relationships
and increased customer loyalty that continues to be enhanced using Plus500's
retention technologies.
ARPU was $2,264 in H1 2024 (H1 2023: $2,097), including $1,475 in Q2 2024 (Q2
2023: $1,308), and AUAC was $1,489 in H1 2024 (H1 2023: $1,490), including
$1,708 in Q2 2024 (Q2 2023: $1,627). Plus500 has an established track record
of delivering high ROI on marketing spend owing to its unique technological
capabilities and global reach.
Plus500 continually invests in its technology to drive innovation and enhanced
user experience. With many customers taking a mobile-first approach to
trading, the Group saw 87% of its OTC revenue in H1 2024 generated from
customers trading on mobile or tablet devices (H1 2023: 87%). In addition, 83%
of OTC customer trades took place on mobile or tablet devices in H1 2024 (H1
2023: 82%). This highlights Plus500's industry leadership when it comes to
mobile-first services and its relentless focus on innovation.
Financial review
Plus500 delivered a strong financial performance in H1 2024. Revenue and
EBITDA grew year-on-year, by 8% and 6%, respectively, and the Group's cash
position passed the $1bn mark for the first time as of 30 June 2024.
Revenue in H1 2024 was $398.2m (H1 2023: $368.5m), comprising $369.1m in
trading income and $29.1m in interest income, including revenue of $182.6m in
Q2 2024 (Q2 2023: $160.6m). EBITDA for H1 2024 was $183.9m (H1 2023: $174.1m)
equating to an EBITDA margin of 46% (H1 2023: 47%), including $81.3m in Q2
2024 with EBITDA margin of 45% (Q2 2023: $73.2m and 46%, respectively).
Customer Income, a key measure of the Group's underlying performance, improved
during H1 2024 to $329.4m (H1 2023: $304.3m), including $159.8m in Q2 2024 (Q2
2023: $146.5m).
Customer Trading Performance 11 (#_ftn11) was $39.7m during H1 2024 (H1 2023:
$41.9m), including $9.1m in Q2 2024 (Q2 2023: $(8.2m)). The Group continues to
expect that the contribution from Customer Trading Performance will be broadly
neutral over time.
Net profit in H1 2024 was $148.8m (H1 2023: $146.5m) and basic EPS increased
by 18% to $1.90, compared to H1 2023 (H1 2023: $1.61).
Plus500 operates a disciplined approach to managing its cost base, which
continues to be positively weighted towards variable costs. During H1 2024,
70% of the Group's costs were variable (H1 2023: 70%) which continues to
constitute a key financial strength for Plus500 to drive future growth.
Total SG&A expenses were $218.0m during H1 2024 (H1 2023: $196.2m), the
main elements of which were marketing technological investment of $84.5m (H1
2023: $75.2m), payment processing costs of $19.6m (H1 2023: $21.3m), employee
benefits and other related expenses of $63.9m (H1 2023: $53.5m) and
commissions & fees of $22.0m (H1 2023: $12.4m), which can be attributed to
the growth of the US futures businesses.
Net financial income amounted to $3.5m in H1 2024 (H1 2023: $2.6m). A
substantial proportion of the Group's cash is held in US dollars in order to
provide a natural hedge, thereby reducing the impact of currency movements on
financial expenses.
Total assets were $1,106.0m at the end of the period (H1 2023: $940.1m), with
equity of $701.8m, representing approximately 63% of the balance sheet,
following the shareholder distributions in H1 2024.
Plus500 operates a highly cash generative business model, driven by strong
operating cash conversion 12 (#_ftn12) of 97% in H1 2024 and supported by
relatively low levels of capital expenditure as a result of its automation and
technological capabilities.
The Group remained debt-free and held cash and cash equivalents of $1,007.2m
as of 30 June 2024 (30 June 2023: $849.0m; 31 December 2023: $906.7m).
Plus500's strong cash generation and cash balances again enabled it to invest
in growth, whilst delivering significant levels of shareholder returns.
Plus500's established track record of shareholder returns
Since the Company's IPO on the London Stock Exchange in 2013, Plus500 has
generated over $3.4bn in cash from operations, $2.7bn in accumulated net
profit and distributed $2.3bn in shareholder returns, including those
announced today. This impressive track record made Plus500 the best performing
company on the FTSE All-Share on a total return basis, over that time frame.
Shareholder returns policy and capital allocation framework
The Company's shareholder returns policy is to return at least 50% of net
profits to shareholders through share buyback programmes and dividends, on a
half yearly basis, with at least 50% of this distribution being made by way of
share buybacks. The Board may also consider executing special share buybacks,
or other distributions, on a half yearly basis, dependent on fiscal year
results as well as on investment and growth opportunities. This shareholder
returns policy applies to net profits on a half-yearly basis and is based on a
23% corporate tax rate, for both interim and final distributions.
The Board has a clear capital allocation framework, based on an ongoing
assessment of the availability of excess capital going forward, to ensure
there continues to be an optimal balance between shareholder returns,
investments in future growth and in driving business continuity over the long
term. In particular, and aligned to this framework, the Board will continue to
ensure that appropriate levels of available capital are maintained for
required working capital and other factors to drive future growth.
Shareholder returns related to H1 2024
Today, the Board has announced total shareholder returns of $185.5m in
relation to H1 2024, including total share buyback of $110.0m, comprising an
interim share buyback programme of $35.4m and a special share buyback
programme of $74.6m. In addition, total dividends of $75.5m 13 (#_ftn13)
($1.0000 per share) were also announced today, comprising an interim dividend
of $35.4m ($0.4686 per share) and a special dividend of $40.1m ($0.5314 per
share). Both dividends have an ex-dividend date of 29 August 2024, a record
date of 30 August 2024 and a payment date of 11 November 2024.
Total shareholder returns announced today amount to $2.46 14 (#_ftn14) per
share, reflecting the Company's efforts to return value to shareholders
through a $75.5m dividend distribution and $110m in share buybacks. The
combination of dividends and buybacks underscores the Company's commitment to
enhancing shareholder returns and demonstrates its robust financial position.
In H1 2024, the Company repurchased 3,229,215 shares, at an average price of
£19.73, for a total cash consideration of $80.7m. As of 30 June 2024, the
remaining number of the Company's ordinary shares in issue was 76,509,277. The
Company held a total of 38,379,100 ordinary shares in treasury as of 30 June
2024. These represent shares which were purchased following the commencement
of Plus500's initial share buyback programmes in 2017. Ordinary shares that
are repurchased by the Company under its buyback programmes are held in
treasury and are not entitled to dividends and have no voting rights.
Governance and Social Responsibility
Providing access to financial markets via the Group's intuitive, secure, and
user-friendly platforms is core to Plus500's purpose. Equally important is the
Board's commitment to customer protection and support.
Plus500 also places great emphasis on employee welfare, well-being, and career
opportunities throughout the Group, and is firmly committed to equality and
inclusion. The Group continued to be involved in the local communities in
which it operates, and supports employees' volunteering activities. During the
period, the Group also made several donations worldwide to support local
communities and causes.
Under the leadership of the Company's highly respected Chair, Professor Jacob
A. Frenkel who has led the Board for over three years now, Plus500 continued
to focus on governance, investor engagement and social responsibility. The
Board's balance of skills and experience continues to develop and, following
shareholder approval at the Company's Extraordinary General Meeting held on 8
January 2024, Mr. Daniel King commenced a three-year term as an External
Director and Independent Non-Executive Director, on 19 June 2024. Certain
rotations were also made to the Board's Committees, as Mr. King was also
appointed as Chair of the Remuneration Committee and as a member of the Audit
and Nomination Committees. In addition, on 19 June 2024, Ms. Anne Grim joined
the Regulatory & Risk Committee.
FY 2024 outlook remains positive
Plus500 remains strategically well positioned to capitalise on both short-term
market conditions and the medium to long-term growth trends in its end
markets. In the short-term, its increasingly diversified offering and
intuitive trading platforms allow customers to access a wide variety of
products, services and features across multiple markets.
These initiatives are designed to position the Group for key growth
opportunities, including new products, services and markets, the expansion of
its OTC, futures and share dealing offerings and the deepening of its customer
engagement and retention initiatives. These growth opportunities will be
accessed by the Group's ongoing investment in developing its position as a
global multi-asset fintech group, through further organic investments in
technology, marketing and people, as well as by actively targeting additional
bolt-on acquisitions in selected markets and geographies.
For FY 2024, the Board expects Plus500's performance to be ahead of current
market expectations driven by its continued development and delivery of new
products, investment in its market leading proprietary technology, and the
strength of the relationships and engagement with its customers.
Over the medium to long-term, the opportunity to drive growth, scale and
compounding value creation is significant. Plus500 has strong fundamentals
underpinning its business and is attracting and retaining more customers while
putting greater focus on customer longevity.
Plus500's disciplined approach to capital allocation and track record of value
creation leave it well positioned to deliver for all stakeholders.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024 (UNAUDITED)
Six months Year ended
ended 30 June 31 December
2024 2023 2023
(Unaudited) (Audited)
Note U.S. dollars in millions
Trading income 369.1 346.2 674.3
Interest income 29.1 22.3 51.9
REVENUE 4 398.2 368.5 726.2
Selling and marketing expenses 5 164.2 148.3 296.9
Administrative and general expenses 6 53.8 47.9 92.9
OPERATING PROFIT 180.2 172.3 336.4
Financial income 5.5 6.6 6.9
Financial expenses 2.0 4.0 7.1
FINANCIAL EXPENSES (INCOME), NET (3.5) (2.6) 0.2
PROFIT BEFORE INCOME TAX 183.7 174.9 336.2
Income tax expense 8 34.9 28.4 64.8
PROFIT AND COMPREHENSIVE INCOME
FOR THE PERIOD 148.8 146.5 271.4
Basic earnings per share (In US dollars) 9 1.90 1.61 3.17
Diluted earnings per share (In US dollars) 9 1.84 1.58 3.12
The accompanying notes are an integral part of the condensed consolidated
interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 JUNE 2024 (UNAUDITED)
As of As of
30 June 31 December
2024 2023 2023
(Unaudited) (Audited)
Note U.S. dollars in millions
ASSETS
Non-current assets
Property, plant and equipment 11.8 3.7 9.7
Goodwill and other intangible assets, net 38.1 38.5 38.3
Right of use assets 15.5 13.4 17.1
Long-term other receivables 8.7 5.0 7.5
Total non-current assets 74.1 60.6 72.6
Current assets
Income tax receivable 0.5 0.7 1.0
Other receivables and others 12 24.2 29.8 24.4
Cash and cash equivalents 1,007.2 849.0 906.7
Total current assets 1,031.9 879.5 932.1
TOTAL ASSETS 1,106.0 940.1 1,004.7
LIABILITIES
Non-current liabilities
Lease liabilities (net of current maturities) 14.1 10.7 15.8
Share based compensation 1.2 0.5 -
Deferred tax liability 6.9 6.9 6.9
Total non-current liabilities 22.2 18.1 22.7
Current liabilities
Dividend 10 74.8 29.9 -
Income tax payable 160.1 125.0 142.2
Other payables 13 97.5 59.3 94.6
Service suppliers 15.2 13.3 12.6
Current maturities of lease liabilities 2.6 2.8 2.6
Trade payables - due to clients 14 31.8 0.9 30.2
Total current liabilities 382.0 231.2 282.2
TOTAL LIABILITIES 404.2 249.3 304.9
EQUITY
Ordinary shares 0.3 0.3 0.3
Share premium 22.2 22.2 22.2
Company's shares held by the Company 11 (686.8) (554.9) (606.5)
Retained earnings 1,366.1 1,223.2 1,283.8
Total equity 701.8 690.8 699.8
TOTAL LIABILITIES AND EQUITY 1,106.0 940.1 1,004.7
David Zruia Elad Even-Chen Prof. Jacob A. Frenkel
Chief Executive Officer Group Chief Financial Officer Non-Executive Director and Chairman
Date of approval of the condensed consolidated interim financial information
by the Company's Board of Directors: 19 August 2024.
The accompanying notes are an integral part of the condensed consolidated
interim financial information.
Registered Company number (Israel): 514142140
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024 (UNAUDITED)
Company's
Ordinary Share Shares held by Retained
shares premium the Company earnings Total
U.S. dollars in millions
BALANCE AT 1 JANUARY 2024 (audited) 0.3 22.2 (606.5) 1,283.8 699.8
CHANGES DURING THE SIX-MONTH PERIOD
ENDED 30 JUNE 2024 (unaudited):
Profit and comprehensive income for the period - - - 148.8 148.8
Share based compensation - - - 8.7 8.7
TRANSACTION WITH SHAREHOLDERS:
Dividend - - - (74.8) (74.8)
Issue of treasury shares to settle
equity share based compensation - - 0.4 (0.4) -
Acquisition of treasury shares - - (80.7) - (80.7)
BALANCE AT 30 JUNE 2024 (unaudited) 0.3 22.2 (686.8) 1,366.1 701.8
BALANCE AT 1 JANUARY 2023 (audited) 0.3 22.2 (341.1) 1,099.1 780.5
CHANGES DURING THE SIX-MONTH PERIOD
ENDED 30 JUNE 2023 (unaudited):
Profit and comprehensive income for the period - - - 146.5 146.5
Share based compensation - - - 7.8 7.8
TRANSACTION WITH SHAREHOLDERS:
Dividend - - - (29.9) (29.9)
Issue of treasury shares to settle
equity share based compensation - - 0.3 (0.3) -
Acquisition of treasury shares - - (214.1) - (214.1)
BALANCE AT 30 JUNE 2023 (unaudited) 0.3 22.2 (554.9) 1,223.2 690.8
BALANCE AT 1 JANUARY 2023 (audited) 0.3 22.2 (341.1) 1,099.1 780.5
CHANGES DURING THE YEAR
ENDED 31 DECEMBER 2023 (audited):
Profit and comprehensive income for the year - - - 271.4 271.4
Share based compensation - - - 13.0 13.0
TRANSACTION WITH SHAREHOLDERS:
Dividend - - - (89.8) (89.8)
Issue of treasury shares to settle
equity share based compensation - - 9.9 (9.9) -
Acquisition of treasury shares - - (275.3) - (275.3)
BALANCE AT 31 DECEMBER 2023 (audited) 0.3 22.2 (606.5) 1,283.8 699.8
The accompanying notes are an integral part of the condensed consolidated
interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024 (UNAUDITED)
Six months ended Year ended
30 June 31 December
2024 2023 2023
(Unaudited) (Audited)
Note U.S. dollars in millions
OPERATING ACTIVITIES:
Cash generated from operations 15 177.5 130.4 336.6
Income tax paid, net (17.7) (18.4) (39.6)
Interest received 29.1 22.3 51.9
Net cash flows provided by operating activities 188.9 134.3 348.9
INVESTING ACTIVITIES:
Purchase of property, plant and equipment (4.0) (1.6) (8.2)
Net cash flows used in investing activities (4.0) (1.6) (8.2)
FINANCING ACTIVITIES:
Dividend paid to equity holders of the Company - - (89.8)
Payment of principal in respect of lease liabilities (1.4) (1.3) (2.7)
Acquisition of treasury shares 11 (80.7) (214.1) (275.3)
Net cash flows used in financing activities (82.1) (215.4) (367.8)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 102.8 (82.7) (27.1)
BALANCE OF CASH AND CASH EQUIVALENTS AT
BEGINNING OF THE PERIOD 906.7 930.2 930.2
Gains (losses) from effects of exchange rate changes on
cash and cash equivalents (2.3) 1.5 3.6
BALANCE OF CASH AND CASH EQUIVALENTS AT
END OF THE PERIOD 1,007.2 849.0 906.7
The accompanying notes are an integral part of the condensed consolidated
interim financial information.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
NOTE 1 - GENERAL INFORMATION
Information on activities
Plus500 Ltd. (the "Company" and together with its subsidiaries, the "Group")
is a global multi-asset fintech group operating proprietary technology-based
trading platforms. Plus500 offers customers a range of trading products,
including OTC ("Over-the-Counter" products, namely Contracts for Difference
(CFDs)), share dealing, as well as futures and options on futures. The Company
has developed and operates online trading platforms, enabling its
international customer base to trade internationally.
The Group's offering is available internationally with main market presence in
the UK, the European Economic Area ("EEA"), Australia, the US, and the Middle
East and has customers located in more than 60 countries worldwide. The Group
operates through operating subsidiaries regulated by the Financial Conduct
Authority ("FCA") in the UK, the Australian Securities and Investments
Commission ("ASIC") in Australia, the Cyprus Securities and Exchange
Commission ("CySEC") in Cyprus, the Israel Securities Authority ("ISA") in
Israel, the Financial Markets Authority ("FMA") in New Zealand, the Financial
Sector Conduct Authority ("FSCA") in South Africa, the Monetary Authority of
Singapore ("MAS") in Singapore, the Financial Services Authority ("FSA") in
the Seychelles, the Commodities Futures Trading Commission ("CFTC") in the US,
the Estonian Financial Supervision Authority ("EFSA") in Estonia, the
Financial Services Agency ("FSA") in Japan, the Dubai Financial Services
Authority ("DFSA") in the UAE and the Securities Commission of the Bahamas
("SCB") in the Bahamas.
The Company also has a subsidiary in Bulgaria which provides operational
services to the Group.
The Company was admitted to trading on the London Stock Exchange on 24 July
2013, is admitted to the Equity Shares in Commercial Companies" ("ESCC")
Category of the Official List and is a constituent of the FTSE 250 Index.
The Group offers trading products: OTC trading; share dealing; and futures and
options on futures. The Group presents its operation as one operating segment.
The address of the Company's principal offices is Building 10.2, Matam, Haifa
3115001, Israel.
NOTE 2 - BASIS OF PREPARATION
Basis of accounting and accounting policies
These condensed consolidated interim financial information for the six-month
period ended 30 June 2024 have been prepared in accordance with IAS 34 -
'Interim financial reporting' as issued by the International Accounting
Standards Board. The condensed consolidated interim financial information
should be read in conjunction with the annual financial statements for the
year ended 31 December 2023, which have been prepared in accordance with IFRS.
This condensed consolidated interim financial information is reviewed and not
audited.
Going concern
The Group has considerable financial resources, a broad range of financial
instruments and a substantial active customer base which is geographically
diversified. As a consequence, the Company's Board of Directors (the "Board")
believes that the Group is well placed to manage its business risks in the
context of the current economic outlook. Accordingly, the Board has a
reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. The Board therefore
continues to adopt the going concern basis in preparing this condensed
consolidated interim financial information.
NOTE 3 - ACCOUNTING POLICIES
Material accounting policies and computation methods used in preparing the
condensed consolidated interim financial information are consistent with those
used in preparing the 2023 annual financial statements, except for income tax,
which in interim periods is recognised based on management's best estimate of
the annual income tax rate expected (see note 8). Where necessary, comparative
figures have been adjusted to conform to changes in presentation in the
current period.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 4 - REVENUE
The revenue attributed to geographical areas is as follows:
Six months Year ended 31 December
ended 30 June
2024 2023 2023
(Unaudited) (Audited)
U.S. dollars in millions
European Economic Area (EEA) 169.6 155.5 324.1
United Kingdom 34.5 31.1 66.3
Australia 24.8 26.0 52.4
Rest of the World 169.3 155.9 283.4
398.2 368.5 726.2
NOTE 5 - SELLING AND MARKETING EXPENSES
Six months Year ended 31 December
ended 30 June
2024 2023 2023
(Unaudited) (Audited)
U.S. dollars in millions
Advertising and technology costs 79.3 69.5 123.9
Commissions to media buying 5.2 5.7 11.5
Payment processing costs 19.6 21.3 40.0
Data processing costs 8.9 8.5 23.2
Payroll and related expenses 13.8 13.0 26.2
Variable bonuses 8.3 6.9 6.7
Share based compensation 4.9 4.8 11.4
Commissions and fees 22.0 12.4 31.2
Other 2.2 6.2 22.8
164.2 148.3 296.9
NOTE 6 - ADMINISTRATIVE AND GENERAL EXPENSES
Six months Year ended 31 December
ended 30 June
2024 2023 2023
(Unaudited) (Audited)
U.S. dollars in millions
Payroll and related expenses 12.1 10.3 20.5
Variable bonuses 5.8 8.4 15.2
Share based compensation 19.0 10.1 14.3
Professional and regulatory fees 7.8 8.7 21.7
Depreciation and amortisation 3.7 1.8 4.1
Other 5.4 8.6 17.1
53.8 47.9 92.9
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 7 - OPERATING EXPENSES
The presentation below reflects the breakdown of operating expenses by nature
of expense:
Six months Year ended 31 December
ended 30 June
2024 2023 2023
(Unaudited) (Audited)
U.S. dollars in millions
Advertising, marketing and commissions to media buying 54.2 55.0 99.3
Employee benefit and other related expenses 63.9 53.5 94.3
IT and technology costs 39.2 28.7 59.3
Payment processing costs 19.6 21.3 40.0
Professional and regulatory fees 7.8 8.7 21.7
Depreciation and amortisation 3.7 1.8 4.1
Commissions and fees 22.0 12.4 31.2
Other 7.6 14.8 39.9
218.0 196.2 389.8
In the year ended 31 December 2023 and the six-month periods ended 30 June
2024 and 30 June 2023, IT and technology costs together with additional
allocated other technological related costs, were $77.1 million, $49.9 million
and $39.8 million, respectively.
NOTE 8 - INCOME TAX EXPENSE
Law for the Encouragement of Capital Investments, 5719-1959
The Law for the Encouragement of Capital Investments, 5719-1959, generally
referred to as the "Investment Law", provides certain incentives for capital
investments in production facilities (or other eligible assets) by "Industrial
Enterprises" (as defined under the Investment Law).
New Tax benefits under the 2017 Amendment that became effective on 1 January
2017 ("2017
Amendment")
The 2017 Amendment was enacted as part of the Economic Efficiency Law that was
published on 29 December 2016, and is effective as of 1 January 2017. The 2017
Amendment provides new tax benefits, as described below, and is in addition to
the other existing tax beneficial programmes under the Investment Law.
The 2017 Amendment provides that a technology company satisfying certain
conditions will qualify as a Preferred Technological Enterprise ("PTE") and
will thereby enjoy a reduced corporate tax rate of 12% on income that
qualifies as Preferred Technology Income, as defined in the Investment Law.
Dividends distributed by a PTE, paid out of Preferred Technology Income, are
generally subject to withholding tax at source at the rate of 20% or such
lower rate as may be provided in an applicable tax treaty.
a. Group taxation
The Group is subject to income tax in multiple jurisdictions, as it has
various international wholly owned operations. The Group's income tax expense
is based on the aggregation of the income taxes derived from its global
jurisdictions. The applicable tax rate in each jurisdiction is based on the
applicable local tax framework. Accordingly, the effective tax rate of the
Group reflects local jurisdictions and the Israeli tax legislation.
b. Company taxation in Israel
The full corporate tax rate in Israel for the years 2024 and 2023 is 23%.
Under the 2017 Amendment, provided the conditions stipulated therein are met,
technological income derived by Preferred Companies from "Preferred
Technological Enterprise" (as defined in the 2017 Amendment), would be subject
to reduced corporate tax rates of 12%.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 8 - INCOME TAX EXPENSES (continued)
b. Company taxation in Israel (continued)
A Preferred Company distributing dividends from technological income derived
from its PTE would generally subject the recipient to a 20% withholding tax
(or lower, if so provided under an applicable tax treaty).
At the beginning of July 2020, the Company received an approval from the
Israeli Innovation Authority ("IIA") that together with the tax ruling
received from the ITA in May 2019, recognises the Company as a PTE for the
years 2017, 2018 and 2019. Accordingly, the applicable tax rate for the
preferred technological income of a PTE for these years was 12%. The Company
is also considered as PTE for the years 2020 and 2021. As a result, the
Company's corporate tax rate for the years 2020 and 2021 was 12%, subject to
the Company complying with the conditions of the Law for the Encouragement of
Capital Investments.
In January 2022, the Company's status as a PTE, as accredited by the ITA under
the tax regime in Israel, has been extended for the years 2022, 2023, 2024,
2025 and 2026, subject to the Company complying with the conditions of the Law
for the Encouragement of Capital Investments. Consequently, the Company's
corporate tax rate for each of these years will be reduced from 23% to 12% and
the withholding tax rate applicable for dividends will be reduced from 25% to
20%.
c. Tax assessments
The Company is currently subject to tax audits in relation to 2020-2023 tax
years. The assessments of amounts of current and deferred taxes require the
Group's management to take into consideration uncertainties that its tax
position will be accepted and of incurring any additional tax expenses. This
assessment is based on estimates and assumptions based on interpretation of
tax laws and regulations, and the Group's past experience. It is possible that
new information will become known in future periods that will cause the final
tax outcome to be different from the amounts that were initially recorded,
such differences will impact the current and deferred income tax assets and
liabilities in the period in which such determination is made.
d. Taxes on income included in the consolidated income statement for the
reported periods
Six months Year ended 31 December
ended 30 June
2024 2023 2023
(Unaudited) (Audited)
U.S. dollars in millions
Current taxes:
Current taxes in respect of current period's profit 36.1 27.6 70.0
Tax income in respect of previous years - - (3.6)
36.1 27.6 66.4
Deferred income taxes:
Change of deferred tax assets (1.2) 0.8 (1.6)
Taxes on income expenses 34.9 28.4 64.8
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 9 - EARNINGS PER SHARE
Earnings per share is calculated by dividing the profit attributable to equity
holders of the Company by the weighted average number of ordinary shares in
issue during the period.
Six months Year ended 31 December
ended 30 June
2024 2023 2023
(Unaudited) (Audited)
Profit attributable to equity holders of the
Company (US dollars in millions) 148.8 146.5 271.4
Weighted average number of ordinary shares in issue*:
Basic 78,234,210 90,906,059 85,744,552
Dilutive effect of equity share based compensation 2,420,690 1,738,170 1,139,574
Diluted 80,654,900 92,644,229 86,884,126
Basic earnings per share (In US dollars) 1.90 1.61 3.17
Diluted earnings per share (In US dollars) 1.84 1.58 3.12
*After weighting the effect of Company's share buyback programmes (see note
11).
NOTE 10 - DIVIDEND
The amounts of dividends and the amounts of dividends per share for the years
2024 and 2023 declared and distributed by the Company's Board are as follows:
Amount of dividend Amount of dividend Date of payment to
EX-DATE (US $ in millions)* per share (US $) Shareholders
23 February 2023 29.9 0.3234 11 July 2023
24 August 2023 59.9 0.7344 9 November 2023
29 February 2024 74.8 0.9462 11 July 2024
On 19 August 2024, the Company declared an interim dividend and a special
dividend in the amounts of $35.4 million and $40.1 million, respectively (see
note 17).
*Between the dividend announcement date and the record date of the dividend,
the number of issued and outstanding ordinary shares of the Company decreased
as a result of the repurchase by the Company of ordinary shares during such
period and the classification of such repurchased ordinary shares as treasury
shares that are not entitled to dividends. However, this did not affect the
dividend per share as announced on the dividend announcement date.
NOTE 11 - COMPANY'S SHARES HELD BY THE COMPANY
The Board approves share buyback programmes. The share buyback programmes are
funded from the Company's net cash balances.
Aggregate
Number of ordinary shares purchased purchase amount (US $ in millions) Average price of shares purchased
Period
Year ended 31 December 2023 14,859,392 275.3 £14.82
Six months ended 30 June 2023 11,485,961 214.1 £14.93
Six months ended 30 June 2024 3,229,215 80.7 £19.73
During the six-month periods ended 30 June 2024 and 2023, the Company issued
20,452 and 16,143 of its treasury shares, respectively, in accordance with the
various share based equity settled compensation grants.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 12 - OTHER RECEIVABLES AND OTHERS
As of As of 31 December
30 June
2024 2023 2023
(Unaudited) (Audited)
U.S. dollars in millions
Securities at fair value 1.5 8.9 2.8
Prepaid expenses 4.5 3.9 2.3
Excess funds in segregation, net* 5.0 3.1 4.7
Other 13.2 13.9 14.6
24.2 29.8 24.4
*Excess funds in segregation, net
are comprised of the following:
Amount required to be segregated (363.9) (202.6) (291.3)
Amount in segregation 368.9 205.7 296.0
5.0 3.1 4.7
All the financial assets included among other receivables and others are for
relatively short periods. Therefore, their fair values approximate or are
similar to their carrying amounts.
NOTE 13 - OTHER PAYABLES
As of As of 31 December
30 June
2024 2023 2023
(Unaudited) (Audited)
U.S. dollars in millions
Payroll, tax and related liabilities 35.0 27.9 34.9
Share based compensation 2.8 2.8 3.9
Other 59.7 28.6 55.8
97.5 59.3 94.6
NOTE 14 - TRADE PAYABLES - DUE TO CLIENTS
As of As of 31 December
30 June
2024 2023 2023
(Unaudited) (Audited)
U.S. dollars in millions
Customers' deposits, net* 261.7 279.9 279.8
Segregated client funds (229.9) (279.0) (249.6)
31.8 0.9 30.2
*Customers' deposits, net are comprised of the following:
Customers' deposits 384.1 419.8 409.4
Less - financial derivative open positions:
Gross amount of assets (141.3) (159.0) (148.4)
Gross amount of liabilities 18.9 19.1 18.8
261.7 279.9 279.8
*The total amount of 'Trade payables - due to clients' includes bonuses to
clients.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 15 - CASH GENERATED FROM OPERATIONS
Six months Year ended 31 December
ended 30 June
2024 2023 2023
(Unaudited) (Audited)
U.S. dollars in millions
Cash generated from operating activities
Net income for the period 148.8 146.5 271.4
Adjustments required to reflect the cash flows from
operating activities:
Depreciation and amortisation 2.1 0.7 1.5
Amortisation of right of use assets 1.6 1.1 2.6
Changes of equity and cash share based compensation 8.8 (2.0) 4.8
Taxes on income 34.9 28.4 64.8
Interest expenses in respect of leases 0.5 0.1 0.7
Exchange differences in respect of leases )0.8( 0.2 0.7
Interest income (29.1) (22.3) (51.9)
Foreign exchange losses (gains) on operating activities 2.3 (2.6) (5.4)
20.3 3.6 17.8
Operating changes in working capital:
Decrease (increase) in other receivables and others 0.2 (2.9) 2.4
Increase (decrease) in trade payables due to clients 1.6 (9.5) 19.8
Increase (decrease) in other payables 4.0 (8.9) 24.3
Increase (decrease) in service suppliers 2.6 1.6 0.9
8.4 (19.7) 47.4
Cash generated from operations 177.5 130.4 336.6
Non-cash transactions
On 20 February 2024, the Board declared a dividend in an amount of $74.8
million ($0.9462 per share). The dividend was paid to shareholders on 11 July
2024 (see note 10).
NOTE 16 - FINANCIAL RISK MANAGEMENT
Financial risks arising from financial instruments are analysed into market,
credit, concentration and liquidity risks. The condensed consolidated interim
financial information does not include all financial risk management
information and disclosures required in the annual financial statements.
Details of how these risks are managed are discussed in the financial risk
management note of the 2023 annual financial statements.
Further to the mentioned above, there has not been a significant change in the
Group's financial risk management processes or policies since year end 2023.
NOTE 17 - SUBSEQUENT EVENTS
On 19 August 2024 the Company declared an interim dividend in an amount
of $35.4 million ($0.4686 per share). The dividend record date is 30 August
2024 and it will be paid to the shareholders on 11 November 2024.
On 19 August 2024 the Company declared a special dividend in an amount
of $40.1 million ($0.5314 per share). The dividend record date is 30 August
2024 and it will be paid to the shareholders on 11 November 2024.
On 19 August 2024, the Company declared the adoption of a share buyback
programme to buy back up to $110.0 million of the Company's ordinary shares,
comprising an interim share buyback programme in the amount of $35.4 million
and a special share buyback programme in the amount of $74.6 million.
1 (#_ftnref1) Market expectations - Based on compiled analysts' consensus
forecasts (Source: Bloomberg), which can be found on the Investor Relations
section of the Company's website, which were for revenue and EBITDA of $697.8m
and $314.6m, respectively, for FY 2024
2 (#_ftnref2) All figures for the six-month period ended 30 June 2024 and
for the six-month period ended 30 June 2023, included in this announcement,
are unaudited
3 (#_ftnref3) EBITDA - Revenue (trading income and interest income) minus
operating expenses plus depreciation and amortisation
4 (#_ftnref4) Customer Income - Revenue from OTC Customer Income (customer
spreads and overnight charges) and Non-OTC Customer Income (commissions from
the Group's futures and options on futures operation and from 'Plus500
Invest', the Group's share dealing platform)
5 (#_ftnref5) Based on Bloomberg TSR of FTSE All-Share between FY 2013 to H1
2024
6 (#_ftnref6) Active Customers - Customers who made at least one real money
trade during the period
7 (#_ftnref7) New Customers - Customers depositing for the first time
8 (#_ftnref8) ARPU - Average Revenue Per User
9 (#_ftnref9) AUAC - Average User Acquisition Cost
10 (#_ftnref10) Customer Churn - [(Active Customers (T) + New Customers
(T+1)) - Active Customers (T+1)]/ Active Customers (T)
11 (#_ftnref11) Customer Trading Performance - Gains/losses on customers'
trading positions
12 (#_ftnref12) Operating cash conversion - Cash generated from operations /
EBITDA
13 (#_ftnref13) The total estimated dividend payout of $75.5m is based on
75,542,089 ordinary shares issued as at 18 August 2024. The total dividend
payout will be subject to the ordinary shares that will be repurchased between
19 August 2024 and the dividend record date of 30 August 2024, which will be
held in treasury and therefore will not be entitled to a dividend and the
actual aggregate dividend payout will be reduced accordingly
14 (#_ftnref14) The total shareholder returns per share is based on
75,542,089 ordinary shares issued as at 18 August 2024
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