Plus500 said on Monday that it expects its yearly profit to exceed market forecasts, despite the fact that the online trading platform’s fourth-quarter growth was slower than the previous quarter due to poor user trading performance.
Since the pandemic began, trading platforms have profited as more people traded online and market volatility increased in 2020.
Plus500, which allows investors to trade complicated financial instruments such as contracts for difference through its website and mobile app, expects to earn $387 million in core profit for the year ending Dec. 31, down from $515.9 million in 2020.
The London-listed firm said its annual sales was $718 million in the year ended Dec. 31, down from $872 million the year before, with a 24 percent drop in the fourth quarter of 2021 compared to the previous year.
According to market consensus statistics compiled by the firm, analysts projected the company to report yearly revenue of $655.2 million and a core profit of $338.7 million.
On Monday, the stock rose 3% in early trading.
Customer trade performance is expected to be broadly neutral over time, according to the Israel-based company, which had negative customer trading in the fourth quarter.