Plus500's shares plummet as revenue collapses
London-listed online trading platform, Plus500, has been punished by investors after the company reported a staggering 82 per cent fall in revenue for the first quarter of the year.
The company said that a mix of subdued markets, fewer trading opportunities and new regulatory rules conspired to act against growth at the FTSE 250 listed firm.
Financial markets provided limited trading opportunities for current and new customers in the first quarter, the company said. It added that it was “impossible to predict market conditions for the rest of the year and therefore too early to draw conclusions about the full year outcome based on the group's performance over the first three months.”
Asaf Elimelech, Chief Executive Officer of Plus500, said markets were surprisingly subdued in the period despite high levels of global political and economic news. However, he remained positive about the outlook.
“While revenue in the quarter was disappointing, we have much to be encouraged about. Plus500 continued to lead the industry in new customer acquisition, both in absolute numbers and in the efficiency of the marketing spend.
“Given recent regulatory changes, it is imperative to attract, engage and retain valuable customers and the company is working on a number of initiatives to extend its reach and further improve the customer experience and the service offered."
Plus500’s share price plummeted more than 40 per cent at the stock market open on Friday and were trading midmorning 25.2 per cent lower at £5.38.