Plus500 registers 28% Y/Y drop in revenues in H1 2023
Online trading company Plus500 Ltd (LON:PLUS) today posted its interim results for the six month period ended 30 June 2023. The results showed improvement compared with the preceding six months. However, the comparison with the year-ago period was far from rosy.
Total revenue in H1 2023 was $368.5m (H2 2022: $321.2m, H1 2022: $511.4m), comprising $346.2m in trading income and $22.3m in interest income, which is also included in EBITDA for the period, including revenue of $160.6m in Q2 2023 (Q2 2022: $240.5m).
EBITDA for H1 2023 was $174.1m (H2 2022: $148.5m, H1 2022: $305.3m) with an EBITDA margin of 47% reported during the period (H2 2022: 46%, H1 2022: 60%).
Customer Income, a key measure of the Group’s underlying performance amounted to $304.3m (H2 2022: $299.8m, H1 2022: $339.8m), including $146.5m in Q2 2023 (Q2 2022: $151.8m). Customer Trading Performance was $41.9m during H1 2023 (H2 2022: $21.4m, H1 2022: $171.6m), including $(8.2m) in Q2 2023 (Q2 2022: $88.7m).
The Group continues to expect that the contribution from Customer Trading Performance will be broadly neutral over time. Interest income during the period increased, owing to wider global interest rate rises, as central banks lifted base rates.
Net profit in H1 2023 was $146.5m (H2 2022: $126.3m, H1 2022: $244.1m) and basic earnings per share was up 19% to $1.61, compared to H2 2022 (H2 2022: $1.35, H1 2022: $2.46).
Total SG&A expenses were $196.2m during H1 2023 (H2 2022: $174.4m, H1 2022: $207.8m), the main elements of which were marketing technological investment of $75.2m (H2 2022: $75.3m, H1 2022: $82.5m), commissions to processing companies of $21.3m (H2 2022: $21.2m, H1 2022: $23.7m) and employee benefits and other related expenses of $53.5m (H2 2022: $38.1m, H1 2022: $42.8m).
Net financial income amounted to $2.6m in H1 2023 (H2 2022: $14.9m, H1 2022: $9.0m). A substantial proportion of the Group’s cash is held in US dollars in order to provide a natural hedge, thereby reducing the impact of currency movements on financial expenses.
Total assets were $940.1m at the end of the period (H2 2022: $1,010.0m, H1 2022: $1,072.5m), with equity of $690.8m, representing approximately 73% of the balance sheet, following the shareholder returns in H1 2023.
In February 2023 the company announced a share buyback programme totalling $70.0m and separately, on 13 June 2023, the Company repurchased shares for a total cash consideration of $127.5m.
In H1 2023, the Company executed share buybacks totalling $214.1m, comprising the outstanding amount of the previous year’s ongoing programme which was $29.4m as at 31 December 2022, the $70.0m programme announced on 14 February 2023, of which, by 30 June 2023, $12.8m was remaining and will be completed in the second half of 2023, and the repurchase of shares on 13 June 2023 in the amount of $127.5m.
In addition, $29.9m was declared as final and special dividends on 14 February 2023 in relation to FY 2022 and paid to shareholders on 11 July 2023.