Plus500, a London-listed forex and CFD broker, provides a trading update on Monday, noting that it “provided further positive momentum” in performance in the third quarter of 2021. Consequently, the company now expects an uptick in fiscal 2021 revenue and earnings before Interest, taxes, depreciation and amortization are from current aggregate analyst forecasts.
According to current consensus forecasts, the broker is expected to generate $555.8 million in the entirety of fiscal year 21, along with an EBITDA of $277.9 million and an EBITDA margin of 50 percent. These numbers were obtained based on the company’s results for the first half of 2021.
The broker’s increased performance expectations followed third-quarter performance, which the company will disclose on October 25 and obtained “despite more stable market conditions compared to recent quarters.”
The trading update added: “This positive momentum was highlighted by the consistent strength of client income, a key underlying measure of growth for Plus500, which has supported a strong revenue performance during the year to date.”
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Plus500 generated $187.6 million in revenue in the first half of the current fiscal year. Although the numbers are down from the record set by the broker during the same period the previous year, it was significantly higher than the FY21 second half.
Increase customer activity
The broker also highlighted that its active client base has grown significantly over the past few years which resulted from a significant investment in the company’s marketing technology to achieve an attractive ROI.
Plus500 has also taken some significant steps for its growth and business development. Last April, it decided to acquire US-based Cunningham Commodities, an authorized futures contract (FCM) dealer, along with the acquisition of technology trading platform provider, Cunningham Trading Systems. This ensured the Israeli company’s entry into the American market.
“The company continues to make progress in accessing additional growth opportunities through more organic investment and targeting potential acquisitions,” the company added.