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UK's Plus500 lifts 2021 profit outlook, shares rise

By Reuters

-Plus500 raised its 2021 profit estimates on Monday, as the British online trading platform reported third-quarter revenue well above pre-pandemic levels on market volatility fuelled by the China Evergrande crisis.

However, the company’s active customer numbers came down to 166,310 in the three months ended Sept. 30 from nearly 200,000 a year earlier, as it added fewer clients this year.

London-listed Plus500, like rivals IG Group and CMC Markets, has seen unprecedented levels of trading by its clients since early 2020 as the COVID-19 pandemic caused extreme volatility.

The company expects to report full-year revenue and core profit above the current market consensus, which call for $555.8 million in revenue and earnings of $277.9 million.

Shares rose 2.3% to 14.28 pounds by 0703 GMT and were among top gainers on the UK midcap index.

“We aim to access future growth through continued organic investment and targeted bolt-on acquisitions,” Chief Executive Officer David Zruia said.

Plus500, which lets investors trade on complex financial instruments such as contracts for difference through its website and mobile app, reported quarterly revenue of $211.4 million, down marginally from $216.4 million last year, but nearly double its pre-pandemic revenue. (https://refini.tv/3jy5P7y).