Online trading

E-commerce firm Plus500 expects market-leading annual profit

Traders view financial news on computer screens at the IG Index trading floor in London, Britain February 6, 2018. REUTERS/Simon Dawson/File Photo

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Jan 10 (Reuters) – Plus500 (PLUSP.L) said on Monday it expects full-year profit to beat market expectations, even as the online trading platform reported slower growth in the fourth quarter compared to the previous quarter due to the weak commercial performance of customers.

Trading platforms have benefited since the pandemic took hold as more people traded online and market volatility increased in 2020.

Plus500, which enables investors to trade complex financial instruments such as contracts for difference via its website and mobile app, expects to generate base profit of $387 million for the year ended Dec. annual base profit of $515.9 million recorded in 2020. .

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The London-listed company said its annual revenue was around $718 million for the financial year ended December 31, compared to $872 million for the same period in 2020, with a decline of 24% in the fourth quarter of 2021 compared to the previous quarter.

Analysts had expected the company to report annual revenue of $655.2 million and base profit of $338.7 million, according to consensus market data consistent with the company.

Shares gained 3% in early trading Monday.

The Israel-based company said it expects customer trading performance to be broadly flat over time, as its customer trading in the fourth quarter was negative.

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Reporting by Sinchita Mitra in Bengaluru; Editing by Sherry Jacob-Phillips

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