Plus500 claims revenue growth in H1 despite UK suspension
Plus500 has revealed a year-on-year jump in revenue in the six months through to June 30, despite the online trading company having been temporarily suspended from operating in the regulated UK market during the period.
As reported by iGaming Business, Plus500 in May was forced to freeze thousands of customer accounts to carry out money laundering checks, but the company has since relaunched its services in the UK market.
Despite the temporary suspension, Plus500 – in what should be its final results announcement as its acquisition by Playtech is set to be completed next month - was able to post revenue of $127 million (€112.5 million) in the first half which represents an increase of 20% on the $106.2 million reported in the same period last year.
However, earnings before interest, tax, depreciation and amortisation fell 23% to $55.5 million, while net profit also slumped 25% to $40.6 million.
In addition, earnings per share dropped 26% to $0.35, although total dividend payout was up from $33 million last year to $65 million at the end of the first half of 2015.
Gal Haber, chief executive of Plus500, said: “Despite the disappointing regulatory setback in the second quarter, the group was profitable in every month in the first half and our business model continued to be cash generative.
“Our easy-to-use and robust platform continued to attract new customers and encourage active customers.
“Whilst the group has been the subject of a high level of regulatory scrutiny, we have made significant progress in enhancing our compliance and onboarding processes in line with the recommendations of our regulatory advisors.
“In June we announced that we had reached a merger agreement with Playtech; this has now been approved by both sets of shareholders.
“The transaction is expected to complete by the end of September, subject to certain conditions being satisfied.”