Online trading company Plus500 expects annual profit to be the best in the market

Traders view financial information on computer screens in the IG Index trading room in London, Great Britain, February 6, 2018. REUTERS / Simon Dawson / File Photo

Jan. 10 (Reuters) – Plus500 (PLUSP.L) said on Monday that it expects its annual profit to exceed market expectations, even though the online trading platform reported slower growth in the fourth quarter compared to the previous quarter due to poor customer business performance.

Trading platforms have benefited since the pandemic took hold as more people traded online and market volatility increased in 2020.

Plus500, which allows investors to trade complex financial instruments such as contracts for difference through its website and mobile app, expects to generate basic profit of $ 387 million for the year ended Dec. 31, compared with a Annual base profit of $ 515.9 million reported in 2020.

The London-listed company said its annual revenue was around $ 718 million in the fiscal year ended Dec.31, down from $ 872 million for the same period in 2020, with a decrease of 24% in the fourth quarter of 2021 compared to the previous quarter.

Analysts expected the company to report annual revenue of $ 655.2 million and basic profit of $ 338.7 million, according to market consensus data consistent with the company.

Stocks gained 3% at the start of trading on Monday.

The Israel-based company said it expects customer business performance to be broadly neutral over time as its fourth quarter customer transactions were negative.

Report by Sinchita Mitra in Bangalore; Editing by Sherry Jacob-Phillips

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