Plus500, one of the leading European forex and CFD brokers, reported record revenue and numbers of new customers in 2016.
According to the preliminary unaudited report for the year, the broker had a net profit of $117.2 million, up 21% from 2015 and revenues of $327.9 million – 19% higher than those of 2015. The cash generated from operations in 2016 rose 20%, to $153.3 million, but the year end net cash fell 13% to $136.5 million, year-on-year.
The EBITDA (Earnings before interest and taxes and depreciation and amortization) of Plus500 in 2016 increased 14% and stood at $151 million. According to Plus500, the EBITDA was in line with market expectations following a strong recovery in margins in H2.
2016 was good for Plus500 in terms of client numbers as well, shows the broker's report. The number of active clients increased 14% to 155,956 (FY 2015: 136,540), while the number of new customers reached 104 432, up 23% from 2016.
"We are pleased to announce record annual results”, said Asaf Elimelech, Chief Executive of Plus500. “Our continued focus on serving our customers' trading needs through product innovation and technology leadership, combined with our marketing activity, has led to strong new customer sign ups, reducing churn in H2 2016 and increased customer activity.
In its statement the broker noted that the first month of 2017 continues to see rising numbers of new clients and good results from online marketing initiatives and sponsorships. Furthermore, Plus500 says it expects to add further new licenses and to continue diversifying revenues.
The broker also says it will comply with the new regulatory changes that were announced during 2016 and any further requirements to be imposed, but is still yet to assess how those would affect its business. “Proposals to reduce leverage are expected to have the greatest financial effect”, Elimelech said. “In this regard the UK regulatory proposals have the most material impact and we note that approximately 20% of our revenues currently go through the UK regulated subsidiary. At the same time, we have a highly flexible business model and a lean cost structure to help mitigate the impact of regulatory changes on our financial performance. Overall, we anticipate that the industry will consolidate around a smaller number of larger participants, of which we believe Plus500 will be amongst the leaders”, he added.
Plus500 is one of the major FCA-regulated forex brokers
and one of the largest UK brokers by market capitalization. It offers trading in more than 2000 instruments that include forex, CFDs on stocks, indices, ETFs, options and forex.