logo-loader

Plus500 expects full-year 2018 revenue to beat expectations

Last updated: 21:10 14 Feb 2018 AEDT, First published: 20:10 14 Feb 2018 AEDT

Touch screen stock chart going up
Plus 500 also stated that it does not expect to experience any adverse effects from the European regulatory action on CFDs and Binary options

Plus500 Ltd (LON:PLUS) shares jumped higher today after the spread betting firm said it expects full-year 2018 revenue to be significantly ahead of market expectations.

The online contracts for differences (CFDs) trading platform provider said core earnings rose 72% to US$259.2mln for the year ended 31 December 2017, with revenue rising 33% to US$437.2mln.

READ: Plus 500 leaps after saying full year profit and revenue seen beating market expectations

The numbers outstripped analyst expectations, with core earnings predicted at US$240mln and revenue of US$425.8mln for the year.

Plus500 also saw a significant increase in customer numbers, reporting a 136% increase in new customers to 246,946 and a 103% increase in active customers to 317,175.

The company also announced that it is unlikely to suffer any material adverse effects on its business from the European regulatory crackdown on CFDs and Binary options.

Plus 500's chief executive officer Asaf Elimelech said: "We will continue to make the necessary adjustments to comply with regulatory changes as they are announced. Whatever the final outcome of the current ESMA and FCA proposals is, we will implement them in full and adapt accordingly."

In mid-morning trading, Plus 500 shares were 7.2% to 1,265p.

READ: Plus 500 sees first-half earnings double amid strong growth in clients, revenues

In a note to clients in reaction to the numbers, analysts at Liberum Capital raised their target price for Plus500 to 1,507p, up from 1,232p.

They also reiterated a 'buy' rating on the stock and said: "Valuation remains compelling".

 

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

11 hours, 45 minutes ago