|Bid||590.00 x 24600|
|Ask||700.00 x 21200|
|Day's Range||618.00 - 640.20|
|52 Week Range||399.70 - 2,076.00|
|Beta (3Y Monthly)||-0.12|
|PE Ratio (TTM)||1.87|
|Earnings Date||Aug 12, 2019 - Aug 16, 2019|
|Forward Dividend & Yield||1.55 (29.43%)|
|1y Target Est||24.27|
The FTSE 100 was up 0.3 percent and the FTSE 250 rose 0.5 percent to cling to a six-month high hit in the previous session to cap off a third straight week of gains. Plus500 slumped more than 31 percent on its worst day in almost four years after its quarterly revenue plummeted to below a fifth of a year earlier. It took a hit from less market volatility creating fewer trading opportunities and new rules affecting retail clients.
New rules reducing leverage and protecting amateur retail investors from heavy losses have been in place for a year but are only beginning to show up more dramatically in results of Plus500 and peers like IG and CMC Markets. A cryptocurrency boom that was in full swing at the start of 2018 has also collapsed, with bitcoin trading at around $5,000 from highs near $20,000, adding to the platforms' problems. Plus500's revenue sank to $53.9 million in the first quarter from $297.3 million a year ago, sending shares down 43 percent to a two-year low of 399.7 pence and dragging IG and CMC around 5 percent lower.
The statement came just hours after Britain's Financial Conduct Authority said the European Securities and Markets Authority's temporary curbs on contracts-for-difference (CFD) will become part of the UK domestic law when it leaves the EU on March 29. CMC expects its quarterly CFD and spreadbet revenue to fall 25-35 percent compared with a prior forecast of a 20 percent drop, it said in an unscheduled trading update on Friday. Shares of CMC touched a two-year low, falling over 20 percent to 93.2 pence by 1457 GMT after the company called the first two of 2019 "challenging".
"In 2017, as in 2016 and 2015, the company did not generate net revenues or losses from market P&L." The words "or losses" were wrongly included due to the "drafting" error, it said. "This error does not impact previously reported revenues, profits or the balance sheet of the company," Plus500 said. Plus500 has already said this week that revenue and profit would fall short of analysts' expectations in the current year, erasing a third of its market value.
The FTSE index increased 0.8 percent after touching its highest level since Oct. 10, handily outperforming its European peers, while the midcaps were also up 0.8 percent. British lawmakers will face a choice between Prime Minister Theresa May's divorce deal or a long extension to the March 29 deadline for leaving the European bloc, May's chief Brexit negotiator Olly Robbins was overheard saying in a Brussels bar.
Online trading platform Plus500 said it will look to expand into regulated markets such as Japan to offset the impact of a crackdown in Europe on high-risk financial betting. Plus500, which allows individual customers to trade contracts for differences on more than 2,200 financial instruments, has been under scrutiny in Europe along with its rivals CMC Markets and IG Group. "We are looking into regulated markets only at the moment," Plus500 Chief Financial Officer Elad Even-Chen said, citing Japan as a good example for foreign exchange-related trading.
The online trading platform reported a 14.1 percent fall in third-quarter revenue due to a regulatory crackdown on leveraged financial betting by ordinary consumers. The company warned in August that its "exceptional performance" in the first half was unlikely to be repeated due to the regulatory clampdown. Like peers IG Group (IGG.L) and CMC Markets (CMCX.L), the company has been under scrutiny as regulators tighten rules on products which allow anyone with a bank card to make highly-leveraged bets on financial markets through their apps and online platforms.