Plus500 backs outlook as third-quarter revenue rises 11%

Plus500 told investors it expects to hit market expectations for the year after posting higher third-quarter revenue. For everyday investors, the update points to a trading platform still adding customers and drawing larger deposits from active users.

The U.K.-based online trading company said third-quarter revenue increased 11% to $187.3 million. Earnings before interest, tax, depreciation and amortization, or EBITDA, rose 2% to $82.2 million, according to the company.

EBITDA is a common profit measure that strips out financing costs, taxes and some accounting charges. Investors often use it to compare operating performance across companies, though it is not the same as net profit.

Plus500 said it expects full-year revenue and EBITDA to be in line with market expectations. MarketWatch reported those expectations at $724.5 million of revenue and $338.3 million of EBITDA.

The customer data in the update helps explain the revenue gain. Plus500 said the number of new customers rose 21% in the quarter, while the average deposit per active customer increased 17%.

For a trading platform, those two metrics matter because revenue depends in part on how many people are using the product and how much capital they bring to the platform. More new customers can expand the user base, while higher average deposits can point to more activity or larger account balances among existing active users.

The company did not provide further detail in the update on what drove the increase in new customers or deposits. Plus500’s shares were shown down 0.76% in MarketWatch’s listing.

This story draws on original reporting from MarketWatch.