Plus500 Sees 74% Surge in Q2 2019
Plus500, one of the significant financial firms maintaining international services for CFDs, has a surprisingly weak first quart for 2019. However, the firm has happily reported that they’ve obtained higher revenues during the second quarter of the year. This information comes as the firm filed trading updates on 2019-07-02 through the London Stock Exchange. The filed report shows that Plus500 has earned $94 Million half-way through the 2019s second financial quarter.
This amount is significantly higher than the amount they earned during the first quarter of the 2019 financial year, which was only $53.9 Million. Combining the two figures shows that Plus500 has made $148 Million so far in 2019.
Plus500 Fights Back
During the 1st quart of this year, the revenue for this financial firm dropped by a fifth. The revenue decline was anticipated by Plus500 Analysts, as the European Securities and Markets Authority implemented new contract-for-difference regulations. The London-Established Firm had its stock crash dramatically, reaching a peak low of 44%. Quickly, the company fought back in the first quarter and were able to stabilise their stocks to 24%, with a valuation of 550 Pence Per Share.
Q2 Sees Higher Client Spreads
Plus500 has seen their revenue spike in the second quarter, which is the result of overnight charges and client spreads with quarter-to-quarter comparisons. As such, the company has seen revenues for the second quarter at $94 Million. This is a 74% Growth for the firm in terms of client spreads and the first quarter. Plus500 is an international firm, but only 48% of their total revenues were earned outside of the United Kingdom and European Economic Area.
Plus500 publically commented on their surge by saying: “Of note, there were signs of reduced levels of marketing across the Company’s peer group which, along with continued strong and focused marketing investment by Plus500, led to an increase in the rate of new customer recruitment and a reduction in the average cost of acquisition.”