Plus500 profit growth stalls despite record revenue as US expansion absorbs spending

Plus500 Ltd (LSE:PLUS) lifted revenue 12% to a three-year high in the first half, but earnings before interest, tax, depreciation and amortisation barely moved, edging up 1% to $187.5 million. The FTSE 250 trading platform attributed the gap to a deliberate step-up in customer acquisition spending, revenue-linked costs scaling in its US business and a stronger Israeli shekel against the dollar. Revenue reached $462.9 million in the six months to 30 June, with second-quarter growth slowing to 5%. The board still expects full-year revenue and EBITDA in line with market expectations, following several upgrades earlier in the year. Shareholders were handed $182.5 million, comprising $100 million of buybacks and dividends of $82.5 million, equal to $1.2001 a share. That lifts returns announced this year to $370 million and the total since the 2013 flotation to roughly $3.1 billion. The sharpest strategic shift came in the US, where the non-OTC arm covering futures and prediction markets grew revenue by about 30% and now contributes some 15% of the group total. Plus500 launched retail prediction markets in February, distributing event contracts issued by Kalshi, and added sports contracts in June covering outcomes in the main American leagues. Prediction markets allow traders to take positions on real-world events rather than asset prices, with sport the most heavily traded category. The division is on track for annualised revenue of about $140 million this year. Single stock futures followed shortly after the period end, while partnerships were agreed with Wealthsimple in Canada and Nelogica in Brazil, adding to existing arrangements with CME Group, F...