UK's Plus500 expects FY revenue, profit to top expectations

Reuters
Updated ·1 min read

(Reuters) -British online trading platform Plus500 said on Tuesday it expects full-year revenue and profit to beat market expectations, helped by higher customer trading volumes due to the rise in market volatility.

The volatility in financial markets has increased since the start of the COVID-19 pandemic, with the Ukraine-Russia crisis adding to the uncertainty, which has boosted trading platforms as more people traded online.

However, Plus500 said it expects contribution from customer trading to be broadly neutral over time.

Plus500 said revenue rose to 705.9 million pounds ($778 million) in the nine months ended Sept. 30, from 557.6 million pounds in the year-ago period.

While the company's active customers declined for the period, its average revenue per user jumped 86%, benefiting from the retention of high-value customers who tend to spend more.

The company-compiled market estimates are for full-year revenue of 744.1 million pounds and core profit of 388.4 million pounds. ($1 = 0.9083 pounds)

(Reporting by Sinchita Mitra in Bengaluru; Editing by Savio D'Souza)