Online trading platform Plus500 saw revenue decline by 13% in 2023 as global financial markets experienced heightened volatility during the year. In a trading update, the CFD and forex broker reported total revenue of $726.2 million for the full year, down from $832.6 million in 2022.
Earnings before interest, taxes, depreciation and amortization decreased to $340.5 million versus $453.8 million the previous year, reflecting lower trading activity levels across Plus500’s client base as geopolitical and economic uncertainty caused fluctuations in major asset classes. Net profit for 2023 came in at $271.4 million compared to $370.4 million in the prior year.
The difficult market conditions negatively impacted Plus500’s trading income, which fell to $674.3 million from $732.7 million in 2022. Revenue generated from client trading performance was also lower at $74.2 million versus $193 million last year. However, Plus500 said it expects trading performance contribution to balance out over the long run.
Despite the challenges, Plus500 continued expanding its global footprint by gaining new regulatory licenses in the UAE and Bahamas, growing its total to 13 jurisdictions. The company sees significant potential in the fast-growing Middle Eastern region and is localizing its offerings there. Plus500 also posted progress in diversifying its product range after entering the futures space through recent acquisitions.
Looking ahead, Plus500 will seek to enter new markets and launch innovative trading products. With a robust balance sheet maintained and experience in regulatory approvals, the CFD broker is well positioned to capitalize on opportunities for growth as volatility potentially remains elevated. However, revenue and earnings may continue facing headwinds if unstable market conditions persist through 2024.
