June 8, 2020 / 7:17 AM / a month ago

Plus500 takes big hit from client trading wins

June 8 (Reuters) - Online trading platform Plus500 Ltd has seen revenues surge again in the second quarter of 2020, it said on Monday, while adding it had lost more than half of the resulting income to customers generating unusually strong trading results.

The company, which continues to expect annual revenue and profitability to be in line with market expectations, said it had generated revenue from customers in the second quarter of $249 million but that the trading gains had reduced that figure to about $102.5 million.

Unlike many of its peers who act as go-betweens for customers to make bets on financial markets against other institutions and traders, Plus500 makes markets itself for its own customers. This means if the customers bet correctly more than incorrectly, it can lose money. Over time, it expects the trading results to have a neutral effect on its business. (Reporting by Yadarisa Shabong in Bengaluru; editing by Patrick Graham)

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