Plus500 results fail to reassure markets

The price of shares in FTSE 250 contracts-for-difference specialist Plus500 (LON:PLUS) dropped by 7.50% to 1,499.47p (as of 12:50 GMT) despite the firm reporting a 96% rise in Q3 revenues. EBITDA also climbed by 91% despite margins narrowing by 200 basis points.

CEO David Zruia commented: “Plus500 has delivered an excellent performance during Q3 2020, building on the positive momentum already achieved in the first half of the year. This performance has been driven by the quality and differentiation of our proprietary technology, which has enabled our business to consistently support our customers in these unprecedented market conditions.

“Given Plus500’s exceptional performance this year to date, and with macroeconomic and sector-specific news flow continuing to provide significant trading opportunities for our customers, we remain very confident about the outlook for the business“.