On Monday, 19th August 2024, the London-listed Israeli brokerPlus500 (LON: PLUS) announced extending its share buyback program.
The new plan follows last February’s $100 million initiation but shares repurchasing dates back to 2017
The company also distributed $75.5 million in shareholders’ dividends. The returns resulted from its cash-generative business model and robust financial position. Cash balance rose from $906.7 million in 2023 to over $1 million.
Value Back to the Shareholders
Plus500 emphasizes that since its 2013 public market debut, it has distributed $2.3 billion in shareholder returns as dividends and share buybacks.
According to David Zruia, the Plus500 CEO, the broker has made financial, strategic, and operational progress.
The share buyback plan extension and dividend announcement followed the half-yearly 8% year-over-year increase of $398.2 million. Plus500 had an exceptional quarterly achievement despite the effect of the retail trading UEFA EURO 2024 Football Championship at the end of Q2 2024.
The broker’s income rose from $346.2 million last year to $369.1 million. The company is confident that its FY24 performance will exceed current market expectations.
Rising Metrics
Plus500 reveals a boost to its customer base, with 56,759 new ones joining the company between January and June, which translates to a 13% annual increase. However, the active member figures stayed almost the same, at 175,909.
For the six months, the average user revenue was $2,264 (an 8% annual increase), while it rose to 13% annually to $1,475 for the second quarter. The company closed with a $3,115 per-client revenue in 2023. In the first half of FY24, the average customer acquisition cost of $1,475 is similar to the previous year’s corresponding period.
Zruia adds that they continue to follow their strategic ambitions of exploring new markets, developing new products, and deepening customer engagements.
Further, the CEO associates the year-on-year rise in new and active customer figures with delivering growth in EBITDA and revenue, continued geographic footprint expansion, and innovative new product development. The company remains strategically positioned to capitalize on short-market terms and medium-term growth trends.
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