Plus500, a Contracts for Difference (CFDs) online provider for trading recently published an update on trading for the first quarter of 2020. The report revealed that the company, which is based in Israel, has seen exceptional revenues.
In particular, the report showed that its first quarter results were exceptional and when comparing this year’s 1st quarter, which was reported at $316.6 million, to the previous year, the increase in revenue was equal to a 487% yearly increase.
Investor Confidence Increasing Due to Solid Results
The report has shown that investor confidence is building after the revenue achieved in the first quarter of 2020 was equal to almost 90% of revenue achieved in 2019. When compared to the first quarter of 2019, the increase in revenue equated to 230%. The high revenues have been resultant on the global financial markets increased volatility due to the panic caused from the coronavirus pandemic, and the resultant increase in client trading activity.
During January, February and March of this year, the number of active customers jumped to 194,024, which represented a 98$ increase when compared to the same period in 2019. In addition, new customers jumped by 289% when compared to the first quarter in 2019. It also represented that the average deposit made by active customers was $3,595 during the first quarter, which compared to 2019, that amount was $2,153.
Speaking on the recently reported results, Chief Executive Officer of Plus500, Asaf Elimelech said “Plus500 has achieved exceptional first quarter results, thanks to our dedicated people working efficiently during these challenging times. As a result of the exceptional Q1 performance, revenue and profitability for the full year are expected to be substantially ahead of current consensus expectations. However, as we remain at an early stage in the financial year, and there are global markets uncertainties as well as ongoing regulatory changes, it remains difficult to predict the outcome for the full year.”
2020 forecasts Expected to be Beaten
Looked towards the rest of 202, Plus500 is expecting to see a strong performance for the second, third and fourth quarters and that its forecasted results will be exceeded, both in revenue and in profit.
In addition, the company stated that so far, the first few days of the second quarter are showing high levels of trading are continuing but said it is difficult to forecast if this period will remain or if it will slow down.
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