Plus 500 releases better than expected earnings showing that despite a slight downturn, revenues are still roughly double what they were before the pandemic began.
Better than expected profits show that Plus 500 hung onto most of the customers it attracted during the lockdown.
The online CFD trading platform had thrived during the pandemic. With people stuck at home, and the markets looking volatile, many tried their hands on the financial markets. It sparked a dramatic surge in usage for online trading platforms such as Plus 500. However, analysts felt comfortable things would calm down once things got back to normal.
Despite a slight downturn, around 166,300 index and forex traders used the Plus 500 trading platform in July to September. This was 16% lower than the 200,000 logging on during the same period last year, it still represented a 50% jump on their pre-pandemic figures in 2019.
Plus 500 revenue has increased as well. During those three months, turnover hit $211.4million just 2% down on the sum generated a year ago and double the figure for 2019. Underlying earnings for Q3 were 83% higher than 2019 and just 4% down on 2019 at $128.6million.
The better than expected results from Plus 500 came as a surprise to City analysts who had estimated $105million in revenue and just $45 million in underlying earnings.
According to their chief executive, David Zruia, the good results serve as testament to the strength of their technology.
“This has been primarily driven by the strength and agility of our technology and our ability to effectively respond rapidly to market developments, news events and customer requirements,” he says.
It also shows the ongoing customer enthusiasm for online trading prospects, including high-risk investments. The pandemic may have prompted many people to give platforms such as Plus500 a go, but it seems they’re sticking around despite Plus 500 not ranking as highly in our surveys as other trading platforms such as IG and CMC Markets.