Plus500 to Return $175m to Shareholders Despite Trading Slowdown

London-listed retail trading platform Plus500 has exceeded market expectations, with the company announcing plans to put $175 million (£138 million) back into shareholders' pockets despite a squeeze on revenues and profits last year.

In 2023, Plus500’s revenues came in at $726.2 million, decreasing by 13% from the previous year, while earnings before deductibles slipped 25% to $340.5 million as it pumped in cash for a growth plan. A company-compiled analyst consensus had predicted revenues of $645.2m and profits of $299.8m for the full year.

Trading platforms have been squeezed by inflation and interest rates as amateur investors look to save cash and avoid market volatility.

Despite the slowdown, Plus500 said it would return $175 million to shareholders, including a new $100 million share buyback program and dividends totaling $75 million. The return of capital follows buybacks and dividends totaling approximately $350 million in 2023.

According to Plus500 boss David Zruia, the firm had made "further progress" on all of its strategic goals, including growth in the U.S. and a new FX platform for traders.

“Over the medium-term, the Group is well placed to take advantage of the compelling growth opportunities in its end markets,” the firm added in a statement.

“Thanks to its proven business model, strong financial position and disciplined approach to capital allocation, the Group is focused on driving the sustainability of its revenues as it develops and invests in its position as a provider of market-leading [Retail] and [Institutional] infrastructure services in the US futures market.”

(Source: Yahoo Finance UK)