Plus500 on track for full-year growth despite revenue drop in Q2

Online trading company Plus500 has revealed that it is on track to achieve year-on-year growth in 2015, despite having suffered a drop in revenue during the second quarter.

Revenue in the three-month period through to June 27 amounted to $43 million (€38.5 million), down from $45.5 million in the corresponding quarter last year.

However, despite having posted lower revenue in the second quarter, Plus500 noted that revenue for the year-to-date stands at $125 million, much higher than the $106.2 million posted at the end of the first half of 2014.

Net cash position as of June 27 stood at $95.4 million, excluding customer cash retained separately in segregated accounts.

Meanwhile, Plus500 also stated that it has completed a remediation plan that was launched earlier this year.

As of June 27, 13,499 customers has been fully reviewed by the remediation team and unfrozen, with 72% of these having already resumed trading.

Of the customers that had their accounts frozen under the plan, just 6% have opted to cash out all of their funds.

“While there remains a number of customers with small, nil and / or dormant accounts still to request their accounts be unfrozen, these represent a diminishing proportion of Plus500UK’s client money balances,” Plus500 said in a statement.

“The UK management team believe they can now be dealt with on a ‘business as usual’ basis along with new customer applications, when the latter are resumed under the new improved procedures.”

In addition, Plus500 confirmed that it will hold a special meeting next month in regards to its potential takeover by Playtech.

As reported by iGaming Business, Playtech revealed that it had agreed to acquire Plus500 for approximately £459.6 million.

However the deal was placed in doubt after a key shareholder in Plus500 said it would oppose the bid.

With Plus500 directors having recommended that shareholders vote in favour of the deal, the company will stage a Special General Meeting on July 16 to approve the recommended cash acquisition.

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