CFD trading platform Plus500 has announced a new $25 million share buyback program after registering an uneventful Q4 performance.
Plus500 has carried out buyback programs in the past during the last program, $88.8 million worth of the company’s shares were bought last year.
The company says the buyback program will be made in an open market transaction. Additionally, trading volume, share price, market conditions, and other factors will be taken into consideration.
Credit Suisse Securities has been chosen to represent the company and manage the program.
An impressive result for 2020
Plus500 published its last year’s unaudited financial on Wednesday. While there were slow improvements on the financial figures for Q4 last year, the entire figure for the year was impressive.
The revenue generated during the fourth quarter fell by 4% year-on-year to $91.9 million. Also, EBITDA fell massively by 65% compared to the figure in Q4 2019, falling from $56.6 million to $19.9 million.
However, Plus500’s performance from Q1 to Q3 2020 was quite impressive, based on the performance report.
The company ended the year with total revenue of $872.5 million, which is more than twice its $354.5 revenue for the previous year.
The number of clients on the brokerage platform also increased for the year, as it welcomed 50,314 new traders in Q4 2020. It was an impressive result compared to the 19,485 new additions recorded the previous year.
Plus500 also recorded a higher number of active trades in Q4 of 2020 than in Q4 of 2019. While the company recorded 99,247 active trades in Q4 2019, the number increased to 215, 305 in Q4 2020.
An impressive year for Plus50
Apart from the increased number of new registrants, the broker also improved its balance sheet. The ended with a cash balance of $593.9 million. With the recently announced buyback program, the company hopes to increase the number of shares in its possession. David Zruia, chief executive officer of the brokerage firm.
“2020 was an exceptional year for Plus500,” he stated, adding that the company performed very well despite the unstable market conditions. Zruia said the company intends to expand its investment in R & D to promote growth in the market.