As profits soar in 2022, Plus500 announces $100 million in investor payouts.

It started repurchase programmes of $70 million and would pay dividends of $30 million.
The business is still debt-free and earns analyst “buy” calls.

It started repurchase programmes of $70 million and would pay dividends of $30 million.
The business is still debt-free and earns analyst “buy” calls.

Allocation of Plus500 of $100 million

A new final share repurchase programme worth $42.4 million and a special buyback programme worth $27.6 million were announced on Tuesday by the Israeli broker with a London listing. A special dividend of $10 million at $0.1078 per share and a final annual dividend to shareholders of $20 million at $0.2156 each will also be paid out in July.

The payment was made after the retail broker finished 2022 with EBITDA of $453.8 million, a 17 percent increase over the prior fiscal year. Moreover, its revenue increased by 16% to $832.6 million. Both of these numbers were made public by Plus500 in a previous trade report.

“In 2022, Plus500 continued to outperform, generating a strong set of results that were far superior than what the market had anticipated at the start of the year. Again, Plus500’s distinctive technology stack proposition drove our performance and underpins our ability to continuously draw in and keep higher-value clients over the long run “said David Zruia, the CEO of Plus500.

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With its most recent buyback and dividend announcement, Plus500 increased its total return to shareholders for the year 2022 to $270.2 million, or 73 percent of the company’s net earnings. It has previously finished a special $50 million repurchase campaign and a $60.2 million buyback programme. Also, in November of last year, it paid out interim dividends totaling $60 million.

A strong cash flow

One of the few publicly traded retail brokerages is Plus500. Following the disclosure of the buyback and dividends, the company’s shares, which are listed on the London Stock Exchange, increased by more than 1.2 percent as of the time of publication on Tuesday morning.

Plus500 is a debt-free organisation, and analysts at Liberum said that the most recent results “affirm the cash-generative nature of its business model… [driven by] client acquisition and retention.”

While 87 percent of its over-the-counter (OTC) revenue was generated by customers trading for over a year, the company did indeed benefit from its “ability to attract and keep higher value, long-term consumers.” The average deposit per active customer increased to a record $8,000 from $5,000, and total deposits increased from $2.1 billion to $2.3 billion.

“In addition to financing the group’s investment in its growth and diversification strategy as it develops a multi-asset portfolio, these cash flows also support strong shareholder payouts (a cumulative $1.7 billion since the IPO).
Multi-Asset
A platform for fintech called multi-asset is made up of different asset classes “Iberum analysts recommended purchasing Plus500 stocks in their addition.

Global Footprint expanding

The Israeli broker is aggressively concentrating on expanding its global reach in the meanwhile. It recently acquired a licence from the Dubai Financial Services Authority (DFSA) and entered the US and Japan after purchasing platforms that were subject to local regulation. It has obtained regulatory licences in Estonia and the Seychelles, and currently has twelve regulatory permits worldwide.

Plus500’s CEO, Zruia, continued, “We are in a highly interesting strategic and commercial position, with various potential development prospects available, especially in the US futures market, which will continue to drive our expansion as a global multi-asset fintech firm. We are convinced that Plus500 will continue to be well-positioned to achieve sustainable growth over the medium to long term with more organic investments and strategic acquisitions.