Israeli online CFD trading company Plus500 Ltd. (LSE:PLUSP) reported its financial results for the third quarter of 2016 and results from the beginning of the year.
In the nine months that ended on September 30, company revenue totaled $236.3 million, 14% up from the corresponding period in 2015.
The number of new clients grew 18% to 69,330 clients compared with 50,000 in the corresponding period. The company also reported 12% growth in the number of active customers which totaled 131,340 in the first nine months of 2016.
The average revenue per user (ARPU) was $1,107 in the third quarter, compared with $1,037 in the second quarter of 2016 and $1,534 in the third quarter of 2015. This figure was a result of the ongoing rise in the number of new active clients (since new clients do not significantly contribute to the revenue in the quarter in which they join) and a slight decrease in customer turnover.
The company believes that continuing to acquire new customers, reducing turnover rates and increasing the life cycle value of clients will have a positive effect on the company's long-term profits and a short-term effect on ARPU. In addition, the life cycle value of the group's clients has been rising due to the addition of a larger share of high-value clients, in addition to the clients' growing loyalty to the platform.
Plus500 CEO Asaf Elimelech said, "The third quarter proves that the group's strong growth trend in the first half of 2016 continued, with the joining of a significant number of new clients and a profit margin recovery. We continue moving on the track that will bring us to the realization of the annual forecasts."
Published by Globes [online], Israel business news - www.globes-online.com - on October 25, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016