Plus500 slips despite Brexit boost to customersComments Off on Plus500 slips despite Brexit boost to customers
Revenues at spread-better Plus500 slipped in the third quarter as nervous new punters wagered less cash.
Average revenue per user fell to $1107 in the three months to October, from $1534 a year earlier, pushing total revenues down 4% to $77.5 million for the quarter.
That was despite a record 47% jump in the number of new customers, which Plus500 said was because new customers don’t spend much in the quarter they are recruited in.
The company secured a rush of new customers after the EU referendum and has thrived from Brexit-fuelled market volatility. Plus500’s founders pocketed just over £100 million by selling a portion of their shareholdings in September.
The spread-better added that its new customers had been tempted by more spending on marketing, and that it intends to “focus on profitability” for the rest of the year.
Chief executive Asaf Elimelech said: “We remain on track to achieve our expectations for the year as a whole.”