Plus500 H1 Revenue $462.9M as Q2 New Customers Fall 12%

Plus500 published its first-half results on Monday, reporting revenue of $462.9 million, up 12% year on year and the strongest six-month total in three years. EBITDA rose only 1% to $187.5 million as the online broker spent more on customer acquisition, technology and US expansion. The EBITDA margin fell to 41% from 45%. Shares traded about 5% higher at 3,942 pence in early London trading.

Customer income advanced 24% to $460.8 million, the best first-half level in five years, while trading income rose 15% to $441.8 million. Customer Trading Performance reduced trading income by $19 million after adding $14 million a year earlier; Plus500 expects the line to be broadly neutral over time. Net profit was 1.5% higher at $151.9 million, and basic EPS rose 6% to $2.17 as buybacks reduced the share count.

The gap between revenue and profit reflected higher costs. Selling and marketing expenses rose 19.5% to $201.8 million, and total operating expenses grew 20% to $278.5 million. Plus500 cited customer acquisition, revenue-linked US costs and a roughly 20% strengthening of the Israeli shekel against the dollar. Marketing technology spend reached $80.9 million, including an extra $16 million to speed up acquisition. Employee costs increased to $94.4 million from $74.2 million, and technology expenses rose to $37.7 million from $30.2 million.

First-half customer additions rose 17% to 65,723 and active customers increased 10% to 197,294. The second quarter was weaker: new customers fell 12% to 25,856, active customers declined 1%, and revenue growth slowed to 5% from 12% for the half. Client quality improved, with customers over five years' tenure contributing 50% of OTC revenue, up from 47%, and those with under one year of tenure contributing 20%, up from 16%.

Non-OTC revenue grew about 30% and now accounts for 15% of group revenue, up from 13%. Plus500 expects the segment, which includes futures, prediction markets and share dealing, to reach an annualised revenue run-rate of about $140 million in 2026. In the US, it entered prediction markets through Kalshi in February, added sports event contracts in June, and provides brokerage and clearing services to FanDuel Prediction Markets. After the period, Wealthsimple and Brazil's Nelogica joined its B2B network, and it listed CME single-stock futures.

The company announced $100 million of buybacks and $82.5 million of dividends, or $1.2001 per share, a payout above first-half net profit. It was supported by $861.3 million of cash and no financial debt. Management guided to full-year revenue of about $811.5 million and EBITDA of $365.1 million, implying second-half revenue of roughly $348.6 million and EBITDA of $177.6 million. OTC trading, including CFDs, still produces about 85% of revenue.