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Plus500 (LON:PLUS), one of the major forex and CFD brokers, reported “significant improvement in profitability and quality of earnings” for the quarter that ended on March 31, 2017.
According to the official trading update, the quarterly revenues of the brokerage stood at $77.5 million, while the EBITDA was $45.8 million – an increase of 25% compared to Q1 2016. The EBITDA margin was 59% ahead of market expectations.
Plus500 also reported a record number of active customers (Customers who made at least one trade using money on the trading platform during the relevant period) during the quarter, with their number increasing 6% on Q1 2016.
According to the company statement, it keeps its positive outlook for Q2 2017. “Plus500 is pleased to announce a strong quarterly performance, with a significant improvement in its profitability and quality of earnings. We have reported a record increase in Active Customers, which shows the strength of and satisfaction with our trading platform”, said Asaf Elimelech, Plus500 CEO. “”We have started 2017 positively; we are confident we can continue to expand and enhance our competitive position whilst successfully incorporating regulatory changes with the minimum of disruption. Our strategy is supported by our strong financial position and cash generative business model, enabling us to deliver good shareholder returns despite short term regulatory uncertainty”, he added.
The company also noted the continued expansion of its global footprint thanks to the three new licenses it got in the past several months– in Israel, South Africa and New Zealand.
Plus500 is licensed by five regulators: New Zealand’s FMA, Israel’s ISA, the Cyprus Securities and Exchange Commission (CySEC), UK’s Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC).
The broker operates in the European Economic Area (EU member states, plus Norway, Lichtenstein and Iceland), Gibraltar, Australia and certain other jurisdictions across Asia, the Middle East and elsewhere. Its subsidiaries include Plus500UK, Plus500AU, Plus500CY and Plus500IL.