Plus500 Announces $100M Stock Repurchase.

In a recent announcement, Plus500 disclosed an incremental $100 million earmarked for stock repurchases unveiled Tuesday by the London-traded brokerage. This initiative is part of its shareholder remuneration scheme, which includes a hefty $75 million dividend payout.

Stellar Shareholder Rewards Amidst Lower Revenue

Amid a fiscal 2023 closing with group revenues dipping to $726.2 million, a 13% fall from the prior year, Plus500 opts to enrich shareholders with $175 million. This sum breaks down into $674.3 million from trading and $51.9 million earned in interest. 

The company’s EBITDA stood at $340.5 million, a 25% decrease, with profitability margins shrinking to 47%, a 15% reduction. Notably, the broker’s latter half of the year saw an upswing, marking an 11% revenue rise and a 12% EBITDA increase to $167.4 million.

Persistent Share Acquisition

The investment firm has steadily reacquired its shares off the market for several years, reaching $257.5 million in the prior fiscal year and distributing dividends totaling $90 million. Endeavoring since 2017 in buyback initiatives, Plus500 replenishes its stock by 36,651,165 shares at an average purchase price of £13.52, aggregating to $0.6 billion.

Plus500’s customer base contracted with 90,944 new clients in fiscal 2023, down 15%, and a drop in active users by 17% to 233,037. “Three years ago, we set an ambitious goal to transform Plus500 into a global fintech company by entering new markets, launching innovative products, and strengthening client relationships,” said CEO David Zruia. 

He added, “Last year, we witnessed significant strides in these strategic areas, which resulted in our outperforming the anticipated market projections for the year.”