Rollercoaster markets aid online trading house Plus500’s recovery

ONLINE trading house Plus500 bounced back from a dire first quarter as rivals went quiet and market volatility returned.

The Israeli-based firm, which specialises in contracts for difference for retail punters, said revenue in the past three months jumped to $94 million (£75 million) from from $54 million in the previous quarter.

All spread-betting/CFD houses were hit by new European rules which curbed leveraged betting at the start of the year.

Plus500 said “reduced levels of marketing across the company’s peer group” had lately helped it retain and attract clients, nearly 80% of whom are in Europe. It has around 100,000 active customers.

The London-listed shares, which more than halved over a few days in February, gained 4% today to 563p, valuing the firm at £634 million.

But Peel Hunt remains sceptical on Plus500’s prospects. The broker said: “Revenue has rebounded… but remains below both our and consensus run-rate. No changes to our numbers with the expectation that lower marketing costs negate a reduction in revenue. There remains a high level of earnings uncertainty and we maintain our Reduce recommendation.”