Plus500 boosts shareholder returns with new $200m payout following revenue surge

Plus500 has unveiled another series of shareholder rewards following a surge in new customers and an uptick in revenue.

The fintech trading platform reported a six per cent year-on-year increase in revenue to $768.3m (£609.3m), bolstered by a similar rise in trading income, as reported by City AM.

Interest income climbed by nine per cent, albeit representing a smaller portion of the company's earnings.

The firm experienced a 30 per cent growth in new customer numbers over the year, with figures rising to 118,010 from 90,944.

Attracting new clients has been a key priority for Plus500, which has made substantial investments in marketing to draw in new traders.

"Our commitment to continued strategic investment has established the foundations for growth in future years," said David Zruia, the chief executive.

Investments have also been channelled into 'customer retention technologies', ensuring that two-thirds of its revenue from over-the-counter products comes from clients who have been trading for more than three years.

Active customer numbers increased by nine per cent to 254,138, while the average deposit per active customer rose to $12,000, up from $10,000 the previous year.

Plus500's non-OTC operations, encompassing futures and share dealing, likewise saw robust expansion. Last year, these activities accounted for approximately 10 per cent of total revenue and 15 per cent of all new customers.

Stuart Duncan, an analyst at Peel Hunt, commented: "The investment case remains based on growth in non-OTC business, as well as strong cash generation."

Plus500 reported a 1% increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $342.3m.

Panmure Liberum analysts noted that the EBITDA rise came "despite heavy customer acquisition investment in Q4".

Following its results, the company announced shareholder returns worth $200m, comprising a $110m share buyback programme and $90m in dividends.