Plus500 Sees Growth

 Plus500 Sees Growth

Plus500 Profits Exceed Expectations

Plus500 (trading firm) profits for 2021 exceeded the market's expectations despite the slowdown in online trading after the COVID-19 boom. At the peak of the pandemic, a boom in online trading was witnessed, which has since settled down - So, in a situation like this, it is exceptional that Plus500 still managed to beat the market expectations.

Plus500 is a rival of other companies like CMC Markets and IG Group, but despite the competition, its profits increased as the retail traders continued their trading operations. Overall, the revenue of Plus500 was $160 million (118 million) during the 4th quarter.

But the profit for the year 2021 as a whole was close to $718 million, while the underlying profit amount is expected to be around $387 million. Both of these figures are way higher than the market expectations, according to experts.

More than 170,000 Active Users

During the 2021 last quarter, Plus500 active customers were around 171,000, which is way higher than the 166,310 during the last 3 months.

After the good news, the Plus500 share price increased to 14.79 after registering an increase of 2.9%. However, the Plus500 stock price is below 16 (last year's high).

The group also expressed its desire to return cash to its shareholders through a share buybacks program. According to sources, the buyback programme of Plus500 will be worth around $12.6 million.

According to the Plus500 board, the position of the trading firm has strengthened during 2021, and they remain confident that the future will also hold strong growth.

If we look at the stock history for the past 2 years, Plus500 stock witnessed a 62% increase during the last 2 years, which is way higher than other stocks.

While good results and strong revenue drove the Plus500 stock higher, the volatile market conditions also played a major role.

Considering how most of the trading is moving towards online and especially mobile, there is a good chance that firms like Plus500 will continue to experience strong growth if the market conditions remain favourable.

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