Connect with us

Hi, what are you looking for?

Finance

Market volatility sees profits jump at Plus500

[unable to retrieve full-text content]

Shares in online tra..

[unable to retrieve full-text content]

Shares in online trading service Plus500 dropped 13 per cent today as it warned that regulatory changes could impact future performance.

The trading platform posted record interim results due to market volatility related to geopolitical events, but said that recently introduced changes could prevent a repeat of the "exceptional" performance.

However, Q3 2018 trading to date is in line with market expectations, it said.

Revenue more than doubled in the first half of the year, rising 147 per cent to $465.5m (£365.4m) from $188.4m, and there was a 189 per cent increase in net profit, from $90.7m to $261.7m.

Geopolitical events resulted in higher than expected market volatility with new and existing customers trading a diverse range of instruments, the firm said in its interim results.

Read more: Plus500 raises profit expectations for second time in two months

Chief executive officer Asaf Elimelech said: "Plus500 has implemented the recent regulatory changes and we anticipate an increased number of EPCs within European jurisdiction, complementing our growing activity outside the EEA.

"Overall, our expectations are that Plus500's outstanding momentum will deliver strong year-on-year growth in 2018, in line with the market expectations."

Global regulation changes, which came into force this month, have seen the European Securities and Markets Authority (ESMA) ban “binary” options sales to retail clients and restrict the sales of CFDs. The

"We have had a very successful first half with two major milestones; another record set of first half results including an exceptional first quarter performance and completion of our move up to the main market," Elimelech said.

"The strong financial performance has enabled us to declare a very significant increase in shareholders returns by declaring a generous interim dividend."

Plus500 said active customers more than doubled in H1 and reached 248,564 from 112,317 last year.

"We have also made strong progress with our international diversification, within and outside the EEA, driven by our strong brand and new licences – Plus500 is now the biggest CFD Broker in the UK, Germany, Spain and Australia according to investment trends, we grew our active customers in Australia fivefold and started operating in Singapore,” Elimelech added.

Read more: Plus500 bumps up expectations for the year after crypto boom boosts trading

Finance

In an interview with ET Now, Dabur India Director Mohit Burm..

Science

The 147th Open championship will be at Carnoustie Golf Club in Scotland. Jan Kruger/R&A Golfers ..

Tech

Enlarge Oliver Morris/Getty Images) In response to an Ars re..

Tech

Enlarge/ You wouldn't really want to use Nvidia's ..