Plus500 Hits $100 Million Distribution to Shareholders

Plus500 (LON: PLUS) released their preliminary unaudited results for 2022, and it’s nothing short of impressive. The London-listed Israeli broker announced a whopping $100 million distribution to inventors in final and special share buybacks and dividends.

The London-based broker also shared their plans to launch a new final share buyback program of $42.4 million and a special buyback program of $27.6 million. In addition, Plus500 is also distributing a final yearly dividend of $20 million to shareholders at $0.2156 per share and a special dividend of $10 million at $0.1078 per share in July. This has created a positive reaction among investors.

The broker ended the fiscal year with an EBITDA of $453.8 million, which is a whopping 17% higher than the previous year. In addition, their revenue jumped by 16% to $832.6 million. The broker has currently become a household name in the world of investing.

“Plus500 continues to outperform, delivering an excellent set of results in 2022, well ahead of market expectations at the beginning of the year. Our performance was again driven by Plus500’s unique proprietary technology stack proposition, which underpins our ongoing ability to attract and retain higher value customers over the long term,” David Zruia, Plus500’s CEO said.

With this latest buyback and dividend announcement, Plus500’s total return to shareholders for 2022 comes to a staggering $270.2 million, representing 73% of the net profits for the fiscal period. Plus, they’ve already completed a buyback program of $60.2 million and a special buyback program of $50 million, not to mention distributing $60 million in interim dividends last November.

Firm Cash Flow

The London-listed company’s share price has already risen by more than 1.2 percent following the news of its buyback and dividends.

But there’s more to this story than just a surge in share prices. Analysts at Liberum have highlighted that Plus500’s debt-free status and the latest results “confirm the cash-generative nature of its business model driven by customer acquisition and retention.” This means that the company’s ability to attract and retain long-term customers is the driving force behind its success.

The company’s over-the-counter (OTC) revenue is primarily driven by customers trading for over a year. This means that 87 percent of its OTC revenue comes from customers who have been with the company for a while. Additionally, total deposits have increased to $2.3 billion from the previous fiscal year’s $2.1 billion, and the average deposit per active customer has grown to a record $8,000 from $5,000.

All these factors point to Plus500’s impressive performance and the potential for even more growth in the future. With a business model focused on customer acquisition and retention.