Plus500 Sets Aside $110 Million For Another Buyback Program

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Israeli retail broking giant Plus500 has stated that it will continue its share buyback program. The firm, listed on the London Stock Exchange, said it has set aside $110 million, comprising a special buyback program of $74.6 million and an interim buyback program of $35.4 million.

This comes after the firm initiated a buyback program of $100 million in February last year. Plus500 started buying back its shares in 2017.

Plus500 Shared $2.5 Billion Revenue To Shareholder

The firm has also given out $75.5 million to its shareholders as dividends. According to Plus500, its cash-generative business model” and robust financial position have enabled the firm to have substantial financial returns for its shareholders. The firm recorded a cash balance of $1 billion, which is more than the $906.7 million it recorded last year.

Plus500 stated that it has shared $2.4 billion with its shareholders in the form of buyback programs and dividends since it debuted in the public in 2013.

Chief Executive Officer of Plus500, David Zruia, commented on the progress the company has made so far. He said the firm has delivered operational, strategic, and financial progress during the first quarter of 2024, which is a great feat for its growth.

The dividend announcement and the buyback program extension came after the firm recorded a strong performance in the first six months. It gained $398.2 million year-over-year, showing an 8% surge. The firm also recorded an impressive quarterly performance, even after the negative impact of the EURO 2024 Football Tournament on retail trading.

While the firm gained immensely from higher rates, it also recorded an impressive increase in its income for the past six months from $346.2 million to $369.1 million.

Plus500 Added 56,759 New Customers

Plus500 says it’s looking forward to a 2024 result that will beat the present market expectations for the year.

Apart from the dividends and buybacks, the firm stated that it gained 56,759 new customers from January to June, showing a 13% annual increase. But the number of active customers remained almost the same at 176,000.

The firm recorded $2,264 as its average revenue per user, indicating an 8% surge annually. It had $3,115 as revenue per client for 2023. Also, the company says its average customer acquisition for H1 of the current year stood at $1,489, which remains the same compared to the same period the previous year.

Zruia stated that the firm is still on track for its ambition of developing new products and expanding into new markets. It also wants to foster a deeper engagement with its customers.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.