Online trading firm Plus500 expects annual profit to top market view

Jan 10 (Reuters) – Plus500 (PLUSP.L) said on Monday it expects its annual profit to exceed market expectations even as the online trading platform reported a slower fourth-quarter growth as compared with the previous quarter on weak customer trading performance.

Trading platforms have benefited ever since the pandemic took hold as more people traded online and market volatility increased in 2020.

Plus500, which lets investors trade on complex financial instruments such as contracts for difference through its website and mobile app, expects to deliver a core profit of $387 million for the year ended Dec. 31, versus an annual core profit of $515.9 million reported in 2020.

The London-listed company said its annual revenue came in about $718 million in the year ended Dec. 31, as compared with $872 million for the same period in 2020, with a 24% fall in the fourth quarter of 2021 versus the prior quarter.

Analysts had expected the company to report an annual revenue of $655.2 million and a core profit of $338.7 million, according to a company-complied market consensus data.

Shares gained 3% in early trade on Monday.

The Israel-based company said it is expecting customer trading performance to be broadly neutral over time, as its customer trading in the fourth quarter was negative.

Reporting by Sinchita Mitra in Bengaluru; Editing by Sherry Jacob-Phillips

Source: https://www.reuters.com/business/plus500-expects-annual-results-top-market-view-despite-weaker-q4-2022-01-10/

World Economic Magazine

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