Plus500 rolls out £138m shareholder return despite trading slowdown

Retail trading platform Plus500 topped market expectations and announced plans to put $175m (£138m) back in shareholders pockets today despite a squeeze on revenues and profits over the past year.

The London-listed Israeli fintech firm said revenues came in at $726.2m in 2023, down 13 per cent on the previous year, while earnings before deductibles slumped 25 per cent to $340.5m as it pumped cash into a growth plan.

A company-compiled analyst consensus had predicted revenues of $645.2m and profits of $299.8m for the full year.

Trading platforms have been squeezed by inflation and interest rates as amateur investors look to save cash and sit out volatility on the markets.

Despite the slowdown, Plus500 said it would return $175m to shareholders with a new share buyback programmes of $100m and total dividends of $75m. The fresh capital return follows some $350m of total buybacks and dividends in 2023.

Boss David Zruia said the firm had made “further progress” all its strategic objectives including growth in the US and a new foreign exchange platform for traders.

“Over the medium-term, the Group is well placed to take advantage of the compelling growth opportunities in its end markets,” the firm added in a statement. 

“Thanks to its proven business model, strong financial position and disciplined approach to capital allocation, the Group is focused on driving the sustainability of its revenues as it develops and invests in its position as a provider of market-leading [Retail] and [Institutional] infrastructure services in the US futures market..”

Shares in the firm are trading down 0.65 per cent over the past year but have rebounded some 40 per cent since October.

Plus500 made headlines last year as it lambasted its share price performance and said it was mulling a dual listing in New York. Zruia said London investors failed to see his company as a fintech firm and viewed it as a finance company, which had dragged down its valuation.

“We estimate that the valuation would be higher within US exchanges,” he said. “It’s something we’ll consider when market conditions are better.”