Plus500 to beat 2014 forecasts after impressive first quarter

2nd Apr 2014 08:12

Plus500, the AIM-listed online trading software group, expects to beat market forecasts for 2014 after seeing 'significant growth' in the first quarter with a threefold increase in revenues and jump in new customer numbers.The firm, which provides services for retail customers to trade CFDs internationally, said it benefitted from market volatility during the period and a "buoyant" initial public offering (IPO) market across Europe and the US. It said it added new CFD instruments to its platform to accommodate these new IPOs."As a result of this strong start to the year, the company expects to exceed current market expectations for both revenue and profit for the year ending December 31st 2014," Plus500 said.Revenues totalled $60.7m in the three months to March 31st, up 207% from the same period in 2013, helped by a 63% increase in new customers to 20,124.The number of active customers totalled 50,438 during the quarter, up 48% year-on-year, while the average revenue per user surged 108% to $1,204.It said its performance was "underpinned by a combination of Plus500's growing brand awareness in its core markets coupled with the ongoing delivery of successful online marketing and affiliate programmes".Strong growth was seen across Europe, especially in the UK, while progress was made in key growth territories such as Australia, the company said.The stock was up nearly 5% at 641p in early trading on Wednesday, lifting its year-to-date gain to over 106%.BC