Plus500 raises outlook as coronavirus panic sends traders into a frenzy
Plus500 is one of the few winners from the coronavirus outbreak as it raised its outlook after a boom in trading activity.
Last week the FTSE 100 suffered its biggest one-day fall since the 1987 crash after President Donald Trump imposed a travel ban on Europe.
The spreadbetting firm said it “has continued to see a significantly increased level of customer trading activity alongside strong momentum across all financial and operational KPIs.”
Plus500’s trading platform allows customers to bet on whether a share price will rise or fall.
Revenue from customer income has been strong because of the heightened levels of market volatility. Plus500 said it had also experienced gains from customer trading performance, which is expected to be neutral over time.
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Given the uncertainty of the markets, Plus500 said it would not predict outcome for the full year at this point. However, it expects revenue and profitability for the full year to be substantially ahead of current consensus expectations.
Last month, Plus500 reported a significant increase in trading activity in the first quarter as fears over coronavirus began to spook investors. It came after a torrid year for the firm, after regulators launched a crackdown on high-risk financial market betting.
Despite a strong performance, shares in Plus500 are down nearly eight per cent.
The outbreak continues to wreak havoc on London’s blue-chip index, which is down 7.21 per cent.
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