Plus500 Performance from 2019 Expected to Reach $354 Million
Plus500, a provider of contracts for differences online, published a update on trading on Monday that revealed its expected performance that ended on December 31st. The update also included that the company is forecasting an EBITDA of $190 million.
The update on trading that the London Stock Market published states Plus 500 expects revenue to be around $354 million. The statement quoted that the company’s Board of Directors is happy with the results from 2019, one that showed the second half of the year stronger in comparison to the first half. However, while revenue was reported at $354 million, that amount is far less than what the company generated in 2018, which was $720.4 million.
Asaf Elimelech, the Chief Executive Officer for Plus500, commented that: “We finished the year in good financial and operational shape following a period of change for the industry, which has provided a more certain regulatory outlook for Plus500. I am encouraged by the momentum we have shown in the second half, reflecting continued optimisation of our marketing spend, enhancements to our customer service, and improvements in our proprietary technology platform. Looking to 2020 we are confident of the prospects for the Group as we focus on further strengthening our customer offering and market positions.”
2019 started weak for Plus500
As reported by the media, it was shared by Plus500 with it investors that the company’s revenues during the first quarter of 2019 dropped by 82% and that the drop was a direct result on the weakening market condition in equities, FX trading and for the most part, most other asset classes. Theo only exception was the bonds market, which for retail investors, is not favoured.
However, Plus500 was able to report that the second and third quarters were stronger and showed an increase in revenue of about $94 million and $110.0 respectively, which was an increase of 74.4% over the first quarter. It is expected that the company will provide additional details relating to its 2019 financial performance when its preliminary results are released on the 12th of February, 2020.