Plus500 backs outlook as quarterly revenue rises 11%

Plus500 said it expects full-year revenue and earnings before interest, tax, depreciation and amortization to meet market expectations after third-quarter revenue increased 11% to $187.3 million. The U.K.-based online trading platform said EBITDA for the quarter rose 2% to $82.2 million, supported by customer growth and higher deposits per active user.

The company said market expectations stand at revenue of $724.5 million and EBITDA of $338.3 million. Its update indicates that the quarterly improvement has kept the business aligned with the consensus figures it cited, a key reference point for investors tracking trading-platform activity and operating profitability.

Plus500 said the number of new customers rose 21% in the third quarter. It also reported a 17% increase in the average deposit per active customer, a measure that points to the amount of client funding held on or directed to the platform during the period.

EBITDA is a profitability measure that excludes interest, tax, depreciation and amortization. For trading platforms, it is often watched alongside revenue because it gives investors a view of operating earnings before financing structure, tax charges and certain non-cash accounting costs are included.

The revenue figure reflects income generated by Plus500’s online trading operations. The company did not state in the update how much of the quarterly growth came from new customers versus existing active customers, but it linked the performance to the rise in new client numbers and the increase in deposits per active customer.

MarketWatch reported that Plus500 shares were down 0.40% alongside the update. The company’s full-year statement gave no indication that its revenue or EBITDA would fall outside the market expectations it cited.

The figures place Plus500’s third-quarter EBITDA margin at a level that remains substantial relative to revenue, though the company reported faster growth in revenue than in EBITDA for the period. That combination indicates that costs or other operating factors absorbed part of the additional revenue during the quarter.

Plus500’s update gives investors a limited but direct read on trading-platform demand: more new customers joined, active customers deposited more on average, and management said the business remained positioned to deliver revenue and EBITDA in line with the market’s current expectations.

This story draws on original reporting from MarketWatch.