Plus500 Ltd announced today (Tuesday) a new share buyback
program totaling up to $110 million. It follows a recently completed $100
million buyback initiative announced in February and is part of a larger $185.5
million shareholder return package unveiled in the company’s H1 2024 results few
weeks ago.
Plus500 Launches Next Share Buyback Program
The newest share buyback „reflects the Group’s robust
financial position, cash generative business model and ongoing ability to
deliver strong shareholder returns over the medium-term,” the company commented
in the annoucenement.
Plus500 has a long history of buying back its own shares
from the market. Such actions usually have two goals: increasing value for
shareholders and allowing the company to use excess cash effectively. For
publicly traded companies, this is also an opportunity to gain tax benefits,
improve financial ratios, and consolidate ownership.
„As of 30 June 2024, the Group held over $1bn of its own
cash on its balance sheet for the first time, enabling it to pursue organic and
inorganic growth initiatives, whilst also delivering attractive and sustainable
returns to shareholders,” Plus500 added.
Under the program’s terms, Plus500 is authorized to
repurchase up to 5,694,522 shares. The buyback will be executed in open market
transactions and managed by Panmure Liberum Limited, operating under
pre-defined parameters without discretionary input from Plus500 or its board members.
The program will run from today until March 31, 2025, with
the company retaining the right to continue purchases during any closed periods
within this timeframe. All repurchased shares will be classified as treasury
shares, with no dividend rights or voting privileges at general meetings.
How Do Plus500’s Financial Results Look?
Recent financial data for Plus500 reveals a mixed
performance. In the second quarter of 2024, the company generated revenue of
$182.6 million, marking a 14% increase compared to the same period last year. However,
this figure represents a 15.3% decrease from the $215.6 million earned in the
first quarter of 2024.
EBITDA followed a similar pattern, rising 11% year-over-year
to $81.3 million but falling 20.7% compared to the previous quarter. The quarter’s EBITDA margin stood at 45%, which is 2 percentage points lower
than the same quarter in the previous year.
On a positive note, Plus500 saw growth in its customer base.
Between April and June, the company added 24,810 new customers, an improvement
from the 22,248 new customers acquired during the same period in 2023.
Plus500 maintains a high revenue per client metric,
currently at $3,115. However, it’s worth noting that the company has been
surpassed in this regard by another publicly traded firm in London, CMC
Markets, whose value has increased to $5,816.
Plus500 Ltd announced today (Tuesday) a new share buyback
program totaling up to $110 million. It follows a recently completed $100
million buyback initiative announced in February and is part of a larger $185.5
million shareholder return package unveiled in the company’s H1 2024 results few
weeks ago.
Plus500 Launches Next Share Buyback Program
The newest share buyback „reflects the Group’s robust
financial position, cash generative business model and ongoing ability to
deliver strong shareholder returns over the medium-term,” the company commented
in the annoucenement.
Plus500 has a long history of buying back its own shares
from the market. Such actions usually have two goals: increasing value for
shareholders and allowing the company to use excess cash effectively. For
publicly traded companies, this is also an opportunity to gain tax benefits,
improve financial ratios, and consolidate ownership.
„As of 30 June 2024, the Group held over $1bn of its own
cash on its balance sheet for the first time, enabling it to pursue organic and
inorganic growth initiatives, whilst also delivering attractive and sustainable
returns to shareholders,” Plus500 added.
Under the program’s terms, Plus500 is authorized to
repurchase up to 5,694,522 shares. The buyback will be executed in open market
transactions and managed by Panmure Liberum Limited, operating under
pre-defined parameters without discretionary input from Plus500 or its board members.
The program will run from today until March 31, 2025, with
the company retaining the right to continue purchases during any closed periods
within this timeframe. All repurchased shares will be classified as treasury
shares, with no dividend rights or voting privileges at general meetings.
How Do Plus500’s Financial Results Look?
Recent financial data for Plus500 reveals a mixed
performance. In the second quarter of 2024, the company generated revenue of
$182.6 million, marking a 14% increase compared to the same period last year. However,
this figure represents a 15.3% decrease from the $215.6 million earned in the
first quarter of 2024.
EBITDA followed a similar pattern, rising 11% year-over-year
to $81.3 million but falling 20.7% compared to the previous quarter. The quarter’s EBITDA margin stood at 45%, which is 2 percentage points lower
than the same quarter in the previous year.
On a positive note, Plus500 saw growth in its customer base.
Between April and June, the company added 24,810 new customers, an improvement
from the 22,248 new customers acquired during the same period in 2023.
Plus500 maintains a high revenue per client metric,
currently at $3,115. However, it’s worth noting that the company has been
surpassed in this regard by another publicly traded firm in London, CMC
Markets, whose value has increased to $5,816.
This post is originally published on FINANCEMAGNATES.
