News

The Fintech Company Plus500 Expects Strong Profits

Plus 500 online trading company predicts annual profits that exceed market expectations

Plus500 said that it expects its annual earnings to outpace the market outlook despite the online trading platform posting slow growth in the fourth quarter compared to the previous quarter after poor performance for trading clients, which pushed the company’s stock up 3% during morning trading.

Trading platforms have benefited tremendously since the start of the pandemic as more people turn to online trading and higher levels of market volatility in 2020.

Plus500, which allows investors to trade complex financial instruments such as Contracts for Difference (CFDs) through its website and mobile app, revealed it expects its core earnings to reach $387 million for the year ending December 31, compared to $515.9 million in annual profits it collected in 2020.

The London-listed company stated that annual revenue will be approximately $718 million in the year ending December 31, compared to revenue of $872 million during the same period in 2020, with a 24% drop in revenue for the fourth quarter of 2021 compared to the third quarter.

As for Wall Street analysts, they expect the company to post revenue of $655.2 million with base earnings of $338.7 million, according to market data.

The company expects clients’ trading activity to return to a stable state in the coming period, after declining to negative levels during the fourth quarter.

Related Articles

Back to top button