Cryptocurrency CFD Trading Sparks Plus500’s 280% Revenue Spike

Plus500, an online exchange specializing in contracts for difference (CFDs), had blockbuster top- and bottom-line performance in its first quarter amid heightened demand for cryptocurrency trading, though it warned that market conditions have since returned to more “normal levels.” The London-listed Plus500, whose headquarters are located in Israel, benefitted from the volatility in cryptocurrency prices, as evidenced by revenue that skyrocketed by more than 280% in Q1 to $297.3 million. Q1 EBITDA rose 400%-plus to $237.3 million, fueled by feverish trading in derivative cryptocurrency trading. But the company softened its guidance for the balance of the year, cautioning that the robust performance isn’t likely to persist amid a normalization of market conditions and a couple of external hurdles. First a look at the positive momentum. “The very strong start to the year, which was referred to in our preliminary announcement of 14 February 2018, resulted from a period of relatively…

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