Plus500 says its revenue tanked 36% in the fiscal first quarter

Plus500 Ltd (LON: PLUS) said on Tuesday its core earnings and revenue saw a decline in the first quarter. The online trading platform had posted a significantly better financial performance in the same period last year when the COVID-19 crisis fuelled market volatility.   

Plus500 opened at £15.46 per share on Tuesday and slid to £15.22 per share in the next hour. In comparison, the stock had started the year at a lower £14.21 per share. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a list of the top few to make selection easier for you.

Plus500 added 89,406 new customers

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Plus500 reported £147.78 million of revenue in the quarter that concluded on 31^st March, representing a 36% annualised decline. Its core earnings in Q1 stood at £88.51 million or a close to 50% decline from last year.

The British international financial firm added 89,406 new customers – an 8% increase from the first quarter of the previous year. Plus500 now has a record 269,743 active clients in total. The online trading platform gives investors access to more than 2,500 financial instruments, including indices, equities, cryptocurrencies, and commodities.

CEO David Zruia commented on the financial update on Tuesday and said:

“Our vision is to enable simplified, universal access to financial markets, as we start to evolve from a technology company solely focused on CFDs to a multi-asset fintech group over time. We aim to achieve this by accessing multiple growth opportunities, through organic investment in our technology and targeted acquisitions.”

In separate news from the United Kingdom, Deliveroo and Sainsbury’s expanded delivery trials to 100 stores on Tuesday.

Plus500’s guidance for fiscal 2021

For fiscal 2021, Plus500 now expects its core earnings and revenue to moderately beat market consensus. The London-listed company registered £634.55 million of revenue last year and £375.20 million of full-year core earnings. Analysts are calling for £330.76 million of revenue for Plus500 in 2021 and £174.76 million of core earnings.

The news comes a week after the home furnishing retailer, Dunelm, reported a 17% decline in quarterly sales.

Plus500 performed largely upbeat in the stock market last year with an annual gain of more than 65%. At the time of writing, the online trading services company is valued at £1.57 billion and has a price to earnings ratio of 4.48.