Plus500 (LON :PLUS), a global multi-asset fintech group operating technology-based trading platforms, released a trading update for the fiscal year ended December 31, 2021 on Monday.
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Financial and Operational Performance
Plus500 achieved exceptional operational and financial performance throughout 2021, ahead of market expectations.
Fiscal 2021 revenue was approximately $718 million, supported by customer income of approximately $702 million. The performance of customer income was driven by a consistently high level of trading activity from clients throughout the year.
This revenue performance, together with the Plus500’s lean and flexible cost base, ensured a high level of EBITDA and basic earnings per share for the year, ahead of market expectations.
EBITDA is expected to be approximately $387 million for the year, and basic EPS for fiscal 2021 is expected to be approximately $3.10.
The group’s active customer base during Fiscal Year 2021 remained well above pre-pandemic levels, at around 406,000.
Outlook
Plus500 made progress in fiscal 2021 on its strategic roadmap to develop its position as a global multi-asset fintech group, through organic investments and targeted acquisitions, which support the diversification of its revenue sources, product line and geographic footprint.
The group will continue to invest in future growth, through new organic investments and actively targeting new acquisitions.
The board continues to expect Plus500 to generate sustainable growth over the medium term to long term.
The company will publish its preliminary results for fiscal 2021 on February 15, 2022.
CEO Commentary
Plus 500 CEO David Zruia said, “We are pleased to have delivered another strong year of financial performance, as well as making significant progress with our strategic and operational plans to strengthen our position as a leading global multi-asset fintech group. With the Group having further strengthened its positioning during 2021, the Board remains confident about the future for Plus500 and continues to expect that the Group will deliver sustainable growth over the medium to long term.”
Wall Street’s Take
Three months ago, Jefferies analyst Martin Price kept a Buy rating on PLUS with a 2,000p price target. This implies 35% upside potential.
Overall, PLUS scores a Moderate Buy consensus rating among analysts based on two Buys. The average Plus500 price target of 2,000p implies 35% upside potential to current levels.
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