Plus500, an Contracts for Difference (CFDs) has published a trading update for the first quarter of 2020, revealing exceptional revenues for the Israel-based broker.
In particular, Plus500 achieved “exceptional Q1 revenues”, according to the company. When comparing Q1 of 2020 revenues, which was $316.6 million, against the same period of the previous year, exceptional might just be the right word, as this is a 487 per cent yearly increase.
Solid results show investor confidence in the trading platform
In fact, the revenue achieved in just the first quarter of this year is equal to 89 per cent of the revenue achieved across the whole of 2019. When measured against the final quarter of 2019, Q1 revenues have also increased by 230 per cent. These solid revenues have been achieved thanks to significantly increased volatility across global financial markets, as a result of , which has led to a strong uptick in client trading activity.
In the first three months of 2020, active customers climbed to 194,024 during the period. This is a rise of 98 per cent versus Q1 2019. Furthermore, New Customer acquisition improved by 289 per cent when compared to Q1 2019
The average deposit per active customer in the quarter was $3,595, whereas the same metric in Q1 of 2019 was $2,153, showing an increase in the broker’s trading platform.
Commenting on the results, Asaf Elimelech, Chief Executive Officer of Plus500, said in the statement: “Plus500 has achieved exceptional first quarter results, thanks to our dedicated people working efficiently during these challenging times.”
“… As a result of the exceptional Q1 performance, revenue and profitability for the full year are expected to be substantially ahead of current consensus expectations. However, as we remain at an early stage in the financial year, and there are global markets uncertainties as well as ongoing regulatory changes, it remains difficult to predict the outcome for the full year.”
Plus500 expects to beat 2020 forecasts
Looking ahead, Plus500 said that because of the very strong performance in the three-month period, that revenue and profitability for the full year are now expected to be substantially ahead of current consensus expectations.
Furthermore, the firm said that the first few days of the second quarter of 2020 have seen continued high levels of volatility, however, it is difficult to forecast how long this heightened period will continue.
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