Plus500 share price rises after trading surge helps firm end 2023 on a high note

Across the year as whole, the fintech announced around $350m in shareholder returns, split between dividends and share buybacks.

Trading platform Plus500 ended 2023 on a high, helping it perform ahead of market expectations across the year.

In a statement to the market, the firm said it expects to generate revenue of around $725m for the year and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $340m. Both of these are “significantly ahead” of current market expectations.

“We believe this was down to better-than-expected customer trading activity in the final quarter,” analysts at Peel Hunt said.

Shares in Plus500 were trading over seven per cent higher in early trade.

Trading platforms like Plus500 saw a surge in revenue during the pandemic and the beginning of 2022 following Russia’s invasion of Ukraine as market volatility jumped.

However, 2023 proved to be a more subdued year for markets and many platforms lost customers, although Plus500 was able to buck the trend.

Last year Plus500 expanded its futures trading business in the US and launched a retail trading platform in Japan. It also secured a regulatory licence in the Bahamas meaning it now holds 13 licences globally.

Across the year as a whole, the fintech announced around $350m in shareholder returns, split between dividends and share buybacks.

“These significant shareholder returns reflect the Group’s ongoing financial strength,” the firm said, noting that its balance sheet remained “robust” with a balance of around $900m at the end of December.

Despite its performance over the year, Plus500’s share price saw little change – closing the year around three per cent lower.

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The stock’s performance has ignited speculation the company will look to shift its listing to New York – following other tech firms.

David Zruia, chief executive, told the Evening Standard in August that the firm’s valuation would be higher in US exchanges.

“The main point here is that we are a technology firm but we are not valued as a tech firm. We are valued as a financial services firm which is not really accurate. In the US we can see tech companies getting much better valuations,” he said.

The firm will publish preliminary results for 2023 on 20 February.

Fellow London-listed trading platform CMC Markets also confirmed today that it had performed above market expectations in 2023.