Online trading company Plus500 Ltd. (AIM: PLUS), has reported double-digit revenue and profit growth for the first half of 2013, results which underpin the 18% gain in the company's share price since it floated on London’s Alternative Investment Market (AIM) in July.
Revenue rose 47% to $44.7 million in the first half from $30.3 million in the corresponding half of 2012, and net profit rose 59% to $15.4 million ($0.15 per share) from $9.7 million. Average revenue per user (ARPU) rose 24% to $898 per month in the first half from $722 per month in the corresponding half.
Cash flow from operations rose to $15.7 million in the first half from $15.4 million in the corresponding half. Cash reserves rose 27% to $32.7 million at the end of June from $25.8 million a year earlier, and rose by a further $21 million following the IPO.
Plus500 said that it had 22% more new customers and 18% more active customers in the first half compared with the corresponding half. It added that the net proceeds from the IPO would financing additional marketing activities, support new market penetration and accelerate organic growth in existing markets, including Australia. It claims to the highest ranked in its field at both Apple's AppStore and the Google Play store.
Plus500 CEO Gal Haber attributed the company's results to growth in customers as well as particularly active financial markets. "Our low cost operating model and highly targeted marketing strategy continues to underpin our growth," he added. "Looking ahead, we have a clear strategy for growth in our customer base leaving us well placed to benefit from future periods of strong market activity. We are confident of meeting market expectations for the full year and are focused on generating strong returns for our new shareholders into the future."
Published by Globes [online], Israel business news - www.globes-online.com - on August 27, 2013
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