(Reuters) -Trading platform Plus500 said higher costs had squeezed its 2024 margins, sending its shares down by as much as 9%, after it reported a 1% rise in core profit on Tuesday.
The company, which provides equity, commodity and options trading services and is active in more than 60 countries, has invested heavily to attract customers and launch products in existing markets, while expanding into new territories.
Plus500 added 118,010 customers in the year to December 31, 2024, up 30%, but those investments led to a 10% rise in expenses to $432.2 million, shrinking margins.
The Israel-based company’s core profit margin slipped to 45% in 2024 from 47% in the previous year.
Its shares fell 9% to 2,604 pence before recovering slightly to trade 4% lower by 1132 GMT. The stock had gained about 11% this year as of the last close, after a rise of about 70% in 2024.
“Our revenue numbers move very little but costs increase more, tempering our EBITDA (earnings before interest, taxation, depreciation and amortisation) forecasts somewhat,” Jefferies analysts said in a note.
Plus500 also forecast 2025 performance in line with market expectations and announced shareholder returns of $200 million, including a $110 million share buyback plan.
“Plus500 is extremely well positioned to capitalise on both short-term market conditions and the medium to long-term structural growth trends in its end markets,” the company said in a statement.
Global markets have been volatile since U.S. President Donald Trump’s proposed tariffs escalated trade tensions, and uncertainties remain over ceasefires in Gaza, and between Russia and Ukraine.
On average, analysts expect Plus500 to report $719.2 million in revenue and $331.3 million in core profit in fiscal year 2025, according to a company-compiled consensus.
Rival IG Group in January reported a rise in first-half profit, but CMC Markets last month provided a weak forecast.
(Reporting by Simone Lobo and Pushkala Aripaka in Bengaluru; Editing by Sumana Nandy and Barbara Lewis)
