REG - Plus500 Ltd - Year End Trading Update

Plus500Announcement

10/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230110:nRSJ1511Ma&default-theme=true

RNS Number : 1511M  Plus500 Limited  10 January 2023

 

10 January 2023
 

Plus500 Ltd.

("Plus500", the "Company" or together with its subsidiaries the "Group")

Year End Trading Update

Excellent operational and financial performance throughout 2022

 

Plus500, a global multi-asset fintech group operating proprietary
technology-based trading platforms, today issues the following trading update
for the financial year ended 31 December 2022.

 

Operational performance and financial position

 

The Group delivered an excellent operational and financial performance during
FY 2022, in line with market expectations 1  (#_ftn1) , following several
upgrades to market expectations related to Plus500's financial performance
during the year. 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. 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.

 

FY 2022 Group revenue grew to approximately $832m (FY 2021: $718.7m),
supported by a strong level of Customer Income(( 2  (#_ftn2) )), a key measure
of the Group's underlying performance, of approximately $639m during the year
(FY 2021: $702.8m). Customer Trading Performance 3  (#_ftn3) for FY 2022 was
approximately $193m (FY 2021: $15.9m), with the Company continuing to expect
that its contribution will be broadly neutral over time.

 

This strong revenue performance, together with the Group's efficient and
flexible cost base, contributed to strong growth in EBITDA to approximately
$454m during the year (FY 2021: $387.1m). Basic earnings per share for FY 2022
is expected to be approximately $3.8 (FY 2021: $3.06).

 

The Group's base of Active Customers(( 4  (#_ftn4) )) during FY 2022 remained
robust, at approximately 280,000 (FY 2021: 407,374), including a substantial
amount of higher value, long term customers. Approximately 106,000 New
Customers(( 5  (#_ftn5) )) were on-boarded during the year (FY 2021: 196,336),
supported by Plus500's on-going investments in product development and
customer engagement initiatives.

 

Against a challenging macro-economic environment, Plus500's balance sheet
remains extremely robust, with the Group continuing to hold no debt or loans
and with cash balances at 31 December 2022 increasing to more than $900m (31
December 2021: $749.5m).

 

Strategic Progress and Outlook

 

Plus500 made continued progress against its strategic roadmap in FY 2022,
further driving diversification of the Group's revenue streams, geographic
footprint and business model.

 

In the substantial US futures market, the Group is targeting several
significant growth opportunities and, to this end, made excellent progress in
FY 2022. This progress was supported by the Group's new sponsorship
partnership with the NBA Chicago Bulls, announced during the year, which will
drive brand awareness for Plus500 in the attractive US market.

 

In Q3 2022, Plus500 launched TradeSniper, an intuitive proprietary futures
trading platform specifically tailored for the sizeable US retail trading
market.

 

 

 

The Group also developed a strategic position as a market infrastructure
provider during the year, with a view to delivering brokerage-execution and
clearing services for institutional clients. This strategic position in the
institutional market is supported by the Group's robust financial position,
its technological capabilities and its position as a full clearing member of
the CME Group exchanges and the Minneapolis Grain Exchange (MGEX(, which were
achieved during the year.

 

Plus500 further deployed its strategic roadmap in FY 2022, and executed
against its global expansion plans, by completing the acquisition of a
regulated entity in Japan, for which integration plans are progressing well.
Over time, this will enable the Group to access the substantial Japanese
trading market, where Plus500 will apply its considerable technological
capabilities and financial strength to build its market position.

 

The Company continues to invest in product development to further deepen
customer engagement, including through continued recruitment at the Company's
R&D centres in Israel. Plus500 is proud to now have a latent base of over
24 million customers registered on its trading platforms since inception,
which may be accessible for the Group's new retention technologies and new
products.

 

Plus500 will continue to assess and pursue a range of additional growth
opportunities, through organic investments and by actively targeting
acquisitions, to build its strategic position as a global multi-asset fintech
group.

 

The Board remains confident about the Group's prospects, particularly as a
result of the significant operational progress and financial momentum achieved
by Plus500 over recent years. The Board continues to expect that Plus500 will
deliver sustainable growth over the medium to long term.

 

Shareholder Returns

 

The Company's shareholder returns policy continues to be to return at least
50% of net profits to shareholders through share buyback programmes and
dividends, on a half yearly basis. The Board will also consider executing
special share buybacks, or other distributions, on a half yearly basis.

 

During FY 2022, the Company repurchased 6,943,359 of its shares for a total
consideration of $138.8m.

 

Since its first share buyback programme commenced in 2017, the Company has
repurchased approximately 21.8m shares at a cost of approximately $350m,
emphasising a clear validation of the Board's confidence in the Group's
business model and future prospects.

 

Notice of Results

 

The Company will publish its preliminary results for FY 2022 on 14 February
2023.

 

David Zruia, Chief Executive Officer, commented:

 

"2022 was another excellent year for Plus500, providing further clear evidence
of our continued successful execution against our strategic roadmap and key
operational objectives. The Group's strategic, operational and financial
traction continues to be primarily driven by the power of our market-leading
proprietary technology and our on-going ability to attract and retain higher
value customers over the long term.

 

"We continue to diversify and develop our business as a global multi-asset
fintech group, supported by on-going growth investments in a number of areas,
ensuring Plus500 remains well-positioned to deliver sustainable growth over
the medium to long-term."

 

For further details

 

 Plus500 Ltd.
   Elad Even-Chen, Chief Financial Officer   +972 4 8189503

   Rob Gurner, Head of Investor Relations    +44 7825 189088

                                             ir@Plus500.com (mailto:ir@Plus500.com)
 Brunswick
   Charles Pretzlik, Partner                 +44 20 3128 8549

   Paul Durman, Partner                      plus500@brunswickgroup.com (mailto:plus500@brunswickgroup.com)

 

 

 

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 and Japan 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 50 countries and in 30 languages. Plus500 does not
permit customers located in the US to trade its OTC products.

 

Plus500 does not utilise cold calling techniques and does not offer binary
options. Plus500's trading platforms are accessible from multiple operating
systems (Windows, iOS and Android) 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 shares have a premium listing on the Main Market of the London Stock
Exchange (symbol: PLUS) and are a constituent of the FTSE 250 index.
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 at 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.

 

 

 1  (#_ftnref1) Market expectations based on compiled analysts' consensus
forecasts, which can be found on the Investor Relations section of the
Company's website

 2  (#_ftnref2) 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)

 3  (#_ftnref3) Customer Trading Performance - Gains/losses on customers'
trading positions

 4  (#_ftnref4) Active Customers - Customers who made at least one real money
trade during the period

 5  (#_ftnref5) New Customers - Customers depositing for the first time

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFLDLDIAIIV