|Real-time Estimate - 08/13 05:07:16 am|
Plus500 : Trading Update
|06/08/2020 | 02:08am|
8 June 2020
('Plus500', 'the Company' or 'the Group')
Plus500, a leading online service provider for trading Contracts for Difference ('CFDs') internationally, today issues the following trading update.
Following the Q1 Trading Update issued on 7 April 2020 and the subsequent Trading Update issued on 28 April 2020, heightened levels of market volatility have persisted, and the Company has continued to see record levels of customer trading activity. Performance across the Company's financial and operational KPIs remains strong, with the Group continuing to attract significant numbers of new customers at an attractive cost, and increased levels of activity from existing customers. The Company has added 100,574 New Customers since the start of Q2, which is already ahead of our expectations for the entire quarter, and in excess of the 82,951 New Customers added in Q1.
Revenue from Customer Income1remains at record levels, with the Company generating approximately $249.0m in Q2 to date. However, in recent weeks, most particularly, the week ended 5 June, the Company's Customer Trading Performance2for the year now represents a gain for customers and consequently total revenue for Q2 to date stands at approximately $102.5m. The Board continues to expect Customer Trading Performance2to be neutral over time, consistent with aggregate Customer Trading Performance2representing an insignificant proportion of revenue over many years historically.
This Customer Trading Performance2, along with the average deposit per Active Customer remaining strong, has resulted in a significant increase in the level of net client deposits which are currently approximately $488.4m, three times the level as at 31 December 2019.
Plus500 is a high cash conversion business, with no debt, low capital intensity and limited capital expenditure needs. The Group maintains a substantial level of cash to support current and future levels of activity, including potential fluctuations in Customer Trading Performance2. The Company's cash balance is currently approximately $473.9m.
As announced when reporting gains from Customer Trading Performance2in Q1, the Board expected this performance to revert to a medium-term historic level of near zero. Consequently, notwithstanding the uncertainty regarding the duration of current levels of volatility or the unquantified potential impact from regulatory changes in Australia and the relatively early stage in our financial year, revenue and profitability for the full year is currently expected to be in-line with consensus expectations, as revised following the Trading Update on 28 April 2020. A further update will be provided when we report on Q2 trading in early July.
David Zruia, Interim Chief Executive Officer, commented:
'We are pleased the business has continued to generate record levels of Customer Income, added over 100,000 new customers so far in Q2 and has materially grown the net client deposits balance to almost half a billion dollars.
'We have consistently stated that Customer Trading Performance2is subject to significant market movements and is therefore likely to fluctuate. This is magnified during periods of heightened market volatility such as those we are currently experiencing and given the growing scale of the business. Nonetheless we continue to expect this performance to revert to a medium-term historic level of near zero and our outlook for the year remains unchanged.'
Elad Even-Chen, Chief Financial Officer
Rob Gurner, Head of Investor Relations
+972 4 8189503
+44 7825 189088
Reg Hoare, Rachel Mann, Pete Lambie
+44 20 3128 8591
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.
1 Customer Income - Revenue from customer spreads and overnight charges
2 Customer Trading Performance - Gains/losses on customers' trading positions
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 Company'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', 'projects', '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 factors. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of such entity and the environment in which each 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.
Plus500 operates an online trading platform for individual customers to trade CFDs internationally. The Group offers more than 2,800 different underlying global financial instruments, comprising equities, indices, commodities, options, ETFs, foreign exchange and cryptocurrencies. Customers of Plus500 can trade CFDs in more than 50 countries and in 32 languages. The trading platform is accessible from multiple operating systems (Windows, iOS, Android and Surface) and web browsers. Plus500 retains operating licences and is regulated in the United Kingdom , Australia , Cyprus , Israel , New Zealand , South Africa , Singapore and the Seychelles. Customer care is and always been integral to Plus500, as such, customers cannot be subject to negative balances. A free demo account is available on an unlimited basis for 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 does not utilise cold calling techniques and does not offer binary options. 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
Plus500 Ltd. published this content on 08 June 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 June 2020 06:07:03 UTC