Plus500 (LSE: PLUS) will join the STOXX Europe 600 Index effective January 17, 2025, marking the latest milestone for the multi-asset trading platform provider. The announcement coincided with the company’s shares reaching 2,770 pence on the London Stock Exchange, establishing a new all-time high.
Plus500 Joins European Benchmark Index
The London-listed company has demonstrated consistent financial performance since its initial public offering in 2013, distributing approximately $2.3 billion in shareholder returns. This track record has positioned Plus500 as the leading performer on the FTSE All-Share Index on a total return basis through December 2024.
Financial statements reveal a robust balance sheet structure, with the company maintaining approximately $900 million in cash and cash equivalents as of December 31, 2024, while carrying no debt.
“Plus500’s inclusion in the STOXX Europe 600 Index for the first time is a significant milestone for the Group and serves as an important recognition for the compounding value creation we have delivered in recent years,” David Zruia, the CEO of Plus500, commented.
The STOXX Europe 600 Index stands as one of Europe’s most prestigious and comprehensive stock market benchmarks, tracking 600 companies across 17 European countries. It encompasses approximately 90% of Europe’s free-float market capitalization, representing a diverse mix of large, mid, and small-cap companies.
“With the Group’s robust fundamentals, disciplined approach to capital allocation and strong cash generation, we look forward to continuing to execute against our strategic roadmap objectives and to delivering attractive and sustainable returns for our shareholders.”
The news was well-received by investors, with Plus500 shares rising to new all-time highs of 2,770 pence at the opening of the LSE on Thursday. At the time of writing, however, they have modestly corrected by just under 0.1% and are currently trading at 2,744 pence.
Revenue Exceeds “Market Expectations”
The announcement comes just days after Plus500 disclosed its 2024 financial performance, reporting revenue of approximately $768 million and EBITDA of about $342 million. The broker highlighted these results as demonstrating “strong financial and operational results,” with revenue significantly exceeding market expectations.
However, when compared to previous numbers, the broker’s fourth-quarter revenue of $182.5 million was slightly below the $189.6 million recorded in the same quarter of the previous year. Additionally, it fell short of the $187.3 million generated in the third quarter of 2024.
According to a recent analysis by Finance Magnates, London-listed retail brokers generally demonstrate strong profitability, with some variation. IG Group (LON: IGG) and Plus500 frequently report robust pre-tax profits, often in the triple digits, while CMC Markets (LON: CMCX) typically reports lower profitability figures.
This article was written by Damian Chmiel at www.financemagnates.com.BrokersRead More
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