Plus500 profit, revenue soar

The company's market cap has reached $1 billion.

Israeli online trading company Plus500 Ltd. (LSE: PLUS) continues to grow. The company finished the first half of the year with great improvement in revenue and profits; revenue grew 138% to $106 million in January-June, and its net profit soared 249% of $59 million. The company announced distribution of a $27 million dividend, about half of its profit for the period.

Plus500 engages in contracts for difference (CFD) online trading of shares, goods, indices, foreign currency, and exchange traded funds (ETFs). Founded in 2008, the company does business in over 50 countries around the world.

Plus500 notes that the number of its customers rose 35% to 67,000 in the first half of the year. The company also said that its average revenue per user (ARPU) rose 76% to $1,580 in the first half of the year.

Plus500's operating cash flow in the first half of 2014 was $63 million, compared with $16 million in the first half of 2013, and its cash balance shot up 252% to $115 million.

Plus500 said, "The company's market share in the UK increased as a result of better exposure and awareness of its brand name and product. The company's strategy of expanding to new territories continues to gather momentum: activity in Australia is now well established, and is being conducted in accordance with the company's work instructions." Company data indicate that the use of its smartphone and tablet application accounts for 56% of all its users.

Plus500 has a market cap of £600 million (about $1 billion), following a 67% surge this year. Plus500 CEO Gal Haber said today, "The company has been listed for trading for more than 12 months, and is still growing, reinforcing its standing, and distributing dividends to its investors. The advantage of being listed in London, the convenience of using the various commercial platforms, and our large-scale marketing efforts have helped the company grow. We are confident of also meeting the market's expectations for 2014."

Published by Globes [online], Israel business news - - on August 13, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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