financemarket.news

 

 

 

Plus500 Ltd sees revenue subtracted by clients’ successful bets


High market volatility attracted record numbers of new customers in the first and second quarters

 () made lower revenue than expected in the second quarter as investors saw more successful bets than losing ones. 

The online contracts for difference (CFDs) broker generated record customer income of around US$249mln so far in the second quarter to end-June.

But the FTSE 250 company’s customers have now made an aggregate gain for the year meaning total revenue for the second quarter so far is nearer US$102.5mln, versus the US$232mln in the first quarter and the US$200mln forecast by house broker Liberum Capital. 

The firm’s interim chief executive David Zruia, who stepped up from operations boss up in April when Asaf Elimelech gave notice of his departure, stressed that customer trading performance is generally “subject to significant market movements and is therefore likely to fluctuate” and that the board continues to expect it to revert to near zero and so their outlook for the year remains unchanged.

The heightened market volatility that has magnified customer trading performance has also attracted growing numbers of new punters, with the 100,574 joining so far in the second quarter topping what had been a record number of 82,951 in the first.

Net client deposits currently stand at US$488.4mln, three times the level seen at the end of December.



Read More: Plus500 Ltd sees revenue subtracted by clients’ successful bets

Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.