Plus500 Ltd. — Earnings Release 2014

Aug 13, 2014

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RNS Number : 9688O

Plus500 Limited

13 August 2014

	13 August 2014

Plus500 Ltd.

("Plus500" or "the Group")

Interim Results for the six months ended 30 June 2014

Plus500, a leading online service provider for retail customers to trade CFDs internationally, is pleased to announce its interim results for the six months ended 30 June 2014.

Financial Highlights:

·      Revenues up 138% to $106.2 million (H1 2013: $44.7 million)

·      EBITDA1 up 229% to $72.0 million (H1 2013: $21.9 million)

·      EBITDA margin up 39% to 68% (H1 2013: 49%)

·      Net profit up 249% to $53.8 million (H1 2013: $15.4 million)

·      Earnings per share increased 213% to $0.47 (H1 2013: $0.15)

·      ARPU up 76% to $1,580 (H1 2013: $898)

·      Interim dividend per share of $0.235

o  Interim dividend pay-out of $27 million

o  Representing 50% of H1 2014 net profit

·      Operating cash flow up 301% to $62.9 million (H1 2013: $15.7 million)

·      Net cash up 252% to $115.2 million (H1 2013: $32.7 million)

Operational Highlights:

·      Strong financial performance continuing into 2014 following a record performance in 2013

o  Continued growth in Active Customers2 increased 35% to 67,232  (H1 2013:49,752)

o  Continued growth in New Customers3 increased 33% to 32,673 (H1 2013:24,626)

·      Online marketing and promotional initiatives underpins customer metrics and drives financial performance

·      UK market share increased as a result of improved brand and product awareness

·      Mobile and tablet adoption rates now represent 56% of all subscribers

·      Developing 'Windows Mobile' version to complement mobile browser

·      New "Guaranteed Stop" feature popular with customers

·      Trading remains in line with market expectations

Gal Haber, Chief Executive Officer of Plus500, commented:

"We are delighted to announce another strong set of results.  We have now been a listed company for over 12 months and the Company continues to go from strength to strength.  The benefits of our London listing, easy to use and robust trading platforms, and our strong marketing efforts have ensured our brand and platform remain one of the fastest growing in the marketplace."

"Our excellent half year numbers, in which we have delivered a 138% increase in revenue and 249% increase in profits, reflect the benefits of our asset light model which differentiates our business from many of our peers.  Current Q3 trading has continued to be strong. We remain confident of meeting market expectations for the full year and are focused on generating continuing strong returns for our shareholders."

1 EBITDA - Earnings before interest and taxes and depreciation and amortisation.

2 Active Customers: Customers who made at least one real money trade during the period.

3 New Customers: Customers depositing for the first time ever during the period.

For further details:

Plus500 Ltd Elad Even-Chen, VP Business Development, Head  of Investor Relations & Company Secretary ir@Plus500.com	Tel: +972-4-8189503
Liberum - Nomad and Broker Chris Bowman / Thomas Bective www.liberum.com	Tel: 020 3100 2222
Buchanan Jeremy Garcia / Sophie McNulty / Clare Akhurst www.buchanan.uk.com	Tel: 020 7466 5000

Company website: www.plus500.com

Business Update

Introduction

The six months ended 30 June 2014 have seen the Group deliver another strong operating performance.  With our IPO now 12 months behind us we remain wholly focused on consolidating our market position in our core markets whilst seeking to expand into new, potentially faster growing markets.  Our core CFD ("Contracts for Difference") market continues to establish itself with the wider retail investment community globally as investors seek more diverse financial instruments to trade.  The broader appeal of CFD trading across Europe remains an important component of Plus500's growth strategy and leaves the Group well placed for the remainder of the current financial year.

The Group had a strong start to 2014 with revenues during the period up 138% to $106.2 million (H1 2013: $44.7 million) and profit before tax up 257% to $73.1 million (H1 2013: $20.5 million).  This performance has been driven by the Group's innovative approach to sales and marketing activities best demonstrated by our highly successful affiliate programme and online marketing campaigns. This key differentiator from our peers enabled the Group to attract higher value customers and improve Average Revenue per User ('ARPU') during the period.

The Group maintains its progressive dividend policy and as such is announcing an interim dividend of $0.235 per share.  This is in line with the Group's publicly stated intention to pay no less than 50% of retained profits in each financial year out as dividends.

Business Summary

Plus500 has developed and operates a propriety online trading platform for retail customers to trade CFDs internationally over more than 2,100 different underlying global financial instruments comprising equities, ETFs, foreign exchange, indices and commodities.

The Group enables retail customers to trade CFDs in more than 50 countries, with its proprietary trading platform accessible from multiple operating systems (Windows, smartphones (iOS and Android), tablets (iOS and Android) and internet PC version).  The Group's trading platform has been designed to be as intuitive and easy to use as possible and has been localised into 31 languages.  Plus500's emphasis on proprietary technology, together with a focus on online marketing initiatives, has helped to differentiate the Group from its competitors. 

The global retail CFD market continues to perform strongly as global equity and commodity indices attract increased levels of retail interest. In general, market volatility, a buoyant new issues market and significant financial news help to drive both trading volumes and new customer sign-ups.

Plus500 generates revenues from three principal activities:

·      dealing spreads on the trading platform

·      overnight premiums which is effectively a financing charge on certain positions held by customers overnight

·      gains (offset by losses) on customers' trading positions

The Group does not charge customers a commission on trades and continues to generate significant levels of profitability from a simple, well balanced operating model. 

The Group conducts its operations from three offices which are located in Haifa (Israel), London (United Kingdom) and Sydney (Australia). Plus500UK Limited ("Plus500UK"), the Group's UK subsidiary, is authorised and regulated by the FCA. Plus500UK also operates in other European Economic Area countries and Gibraltar through a regulatory passporting mechanism. Plus500AU Pty Ltd also has an ASIC licence which enables it to conduct a financial services business in Australia.

Operational Review

Plus500 operates from a strong operational footprint across mainland Europe and Australia.  Alongside growing market share in its core European operations, the Group is currently exploring a number of opportunities to build its brand and further extend market reach.  The Group continues to explore expanding into the Asian market which has a vibrant CFD market alongside a substantial retail investor community. 

The Company has built on its successful IPO in July 2013 and maintains a clear growth strategy to increase active customers whilst growing both the proportion and actual trading time from those customers who trade frequently.  The increased profile and brand awareness following the IPO has been central to the successful adoption of this strategy. Since the IPO, we have seen a positive impact on our business with better levels of ARPU, up by over 76% from previous period (H1 2013), indicating that both new and existing customers are willing to spend more time on our platform, trading more frequently and with higher level of deposits. These increased levels of ARPU, together with ongoing improvements in the efficiencies and effectiveness of our platform, have underpinned the trading performance in the first half, helping to deliver revenues and profits ahead of our initial expectations, despite a relatively subdued Q2 in terms of market activity.

Our UK business continues to grow market share, benefiting from a strong and highly volatile new issues equity market.  We have established CFDs in various new equity products and have seen good levels of customer traction. The flexible nature of our platform enables our development team to react quickly to customer demand ensuring Plus500 offers the broadest product mix. 

Elsewhere we have continued to make progress in developing our Australian operations.  We have embarked on a number of market initiatives designed to stimulate customer traction and strengthening brand awareness. We continue to make progress with our Australian expansion plans and firmly believe the region represents a vibrant CFD market for the Group.

The Group will also evaluate selective bolt-on acquisitions which may provide Plus500 with an established customer base or a regulatory licence in a jurisdiction in which it does not currently hold one.

Platform Development

The Group's proprietary trading platform, which provides customers with a simple and consistent interface across a number of different devices, sits at the heart of our success.  It has been designed to be as intuitive and easy to use as possible and is able to provide customers with real-time prices, execution facilities and a multitude of order types. Through these proprietary delivery channels, customers trade and access their account information online through a number of different devices, which increases accessibility to, and traffic on, the trading platform.

The trading platform's customer interface and back-end are designed to interact efficiently, with as little human input as possible underpinning our low 'cost to serve' metrics and strong ARPU. The trading platform processes each customer's trades automatically, updating the "back office" account information in real-time. Real-time position-keeping also allows customers to monitor their open positions and trading activity continuously.

In the six months ended 30 June 2014 the Group added more than 200 new CFD products into the Plus500 trading platform. As previously stated, the Group has established mobile and tablet versions which now offer the same 'user experience' as the Group's traditional PC version. Our development teams are now working on a 'Windows Phone' version to help expand our mobile penetration rates on non-Android and iOS devices.

The Group is also seeking to expand its customer service capabilities with the launch of 'Live Chat', a real-time customer service tool available to users globally.

Plus500 continues to innovate with ongoing marketing and advertising efforts in order to maximise its return on investment. This applies to the Group's more traditional online marketing and advertising campaigns but also through the Group's affiliate programmes. Improvements to the Group's dedicated affiliate website www.500affiliates.com remain ongoing and recent changes include mobile phone compatibility upgrades and the use of live widgets (for example, providing live CFD price streaming for affiliates to include on their websites).

Separately, the team has also made a number of back office improvements to maintain market-leading efficiencies and levels of automation. Given the ongoing importance of back office functions such as compliance and customer onboarding, we continue to invest in these areas to ensure that our systems remain as efficient and effective as possible.

Financial Review

The six months ended 30 June 2014 represented another strong period of trading for the Group.  The Group grew in all markets and segments, while increasing profitability and strengthening the balance sheet.  The strong performance was achieved through a combination of the Group's ongoing progress in marketing and operational improvements as well as strong customer trading activity.

Revenues in the first half of 2014 totalled $106.2 million (H1 2013: $44.7 million), representing 138% growth compared to H1 2013. The strong growth achieved can be attributed to the growing number of active users and growth in ARPU, up 35% to 67,232 in the first half (H1 2013: 49,752), and up 76% to $1,580 (H1 2013: $898). 

	Qtr 30/6/14	Qtr 30/6/13	Qtr 31/3/14	Qtr 31/3/13
Revenues Number of new customers	$45,497 12,549	$24,876 12,270	$60,745 20,124	$19,796 12,356
Number of active customers	38,652	35,947	50,438	34,127
ARPU	$1,177	$692	$1204	$580
AUAC	$993	$679	$576	$758

EBITDA in the first half of 2014 was $72 million (H1 2013: $21.9 million), an increase of 229%, with EBITDA margins increasing from 49% in H1 2013 to 68% in H1 2014. Results have benefited from the scalability of the Group's business model with the combination of revenue growth and further improvements in the operational cost structure driving the excellent performance. Net profit for the period was $53.8 million (H1 2013: $15.4 million), up 249%.

Plus500's total assets grew from $37.3 million in H1 2013 to $120.6 million in H1 2014, an increase of 223%, with cash balances increasing to $115.2 million (H1 2013: $32.7 million) and equity of $88.8 million (H1 2013: $18.6 million), representing approximately 74% of the balance sheet. 

The Board has declared an interim dividend of $0.235 per share which will be paid on 19 September 2014 to shareholders on the register at close of business on 22 August 2014, with the shares marked ex-dividend on 20 August 2014. This represents a total pay-out of $27 million (H1 2013: $8 million), or 50% of net profit for the six months ended 30 June 2014, in line with the Group's stated policyto pay no less than 50% of retained profits in each financial year out as dividends.

Current Trading and Outlook

Plus500 has performed strongly in the first half of 2014 and the Board looks ahead with continued confidence.  This solid performance further underpins the Board's commitment to pursuing a strong dividend policy and therefore the board is pleased to declare a dividend of $0.235 per share.

Whilst customer acquisition slowed in the second quarter, EBITDA margins have remained strong, underpinned by increased ARPU and ongoing improvements in the efficiency and effectiveness of the Company's online marketing efforts.  Current Q3 trading has continued to be strong and the Group is therefore confident of meeting market expectations for the year ending 31 December 2014.

Plus500 LTD.

CONDENSED CONSOLIDATED BALANCE SHEET

JUNE 30, 2014

		As of 30 June		As of 31 December
		2014	2013	2013
		(Unaudited)		(Audited)
		U.S. dollars in thousands
Assets
CURRENT ASSETS:
Cash and cash equivalents		115,179	32,728	84,108
Short-term bank deposit		1,166	1,303	1,177
Restricted deposit		215	125	215
Accounts receivable		2,949	1,948	3,239
Prepaid expenses		-	578	-
		119,509	36,682	88,739
NON-CURRENT ASSETS:
Long-term deposit		-	68	-
Property, plant and equipment		269	239	244
Intangible assets		53	54	47
Deferred income tax assets		764	265	1,063
		1,086	626	1,354
T o t a l  assets		120,595	37,308	90,093
Liabilities and equity
CURRENT LIABILITIES:
Trade payables - due to clients		5,823	4,506	5,532
Other accounts payable and
accruals:
Service supplies		8,008	4,707	6,840
Other		1,361	1,027	1,134
Income tax payable		16,540	3,774	8,573
Dividend payable		-	3,894	-
Liability for Share-based compensation		-	829	-
		31,732	18,737	22,079
NON- CURRENT LIABILITIES:
Share- based compensation		93	-	-
EQUITY:
Ordinary shares		317	277	317
Share premium		22,220	16	22,220
Retained earnings		66,233	18,278	45,477
Total equity		88,770	18,571	68,014
Total liabilities and equity		120,595	37,308	90,093

Plus500 LTD.

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2014

					Year ended
		Six months ended 30 June			31 December
		2014		2013	2013
		(Unaudited)			(Audited)
		U.S. dollars in thousands
TRADING INCOME - net		106,242		44,673	115,088
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES:
Selling and marketing		30,702		21,195	44,322
Administrative and general		3,583		1,617	3,563
INCOME FROM OPERATIONS:		71,957		21,861	67,203
Financial expenses		1,573		1,405	1,373
Financial income		(2,752)		(57)	(1,335)
FINANCING EXPENSES (INCOME) - net		(1,179)		1,348	38
INCOME BEFORE TAXES ON INCOME		73,136		20,513	67,165
INCOME TAX EXPENSE		19,373		5,121	16,532
PROFIT AND COMPREHENSIVE INCOME
FOR THE PERIOD ATTRIBUTABLE TO
OWNERS OF THE PARENT		53,763		15,392	50,633

		In U.S. dollars
EARNINGS PER SHARE (basic and diluted)		0.47	0.15	0.47

Plus500 LTD.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2014

	Ordinary	Share	Retained
	shares	premium	earnings	Total
	U.S. dollars in thousands
BALANCE AT 1 JANUARY 2014 (audited)	317	22,220	45,477	68,014
CHANGES DURING THE SIX MONTH ENDED
JUNE 30, 2014 (unaudited):
Profit and comprehensive income for the period			53,763	53,763
TRANSACTION WITH SHAREHOLDERS
Dividend			(33,007)	(33,007)
BALANCE AT 30 JUNE 2014 (unaudited)	317	22,220	66,233	88,770
BALANCE AT 1 JANUARY 2013 (audited)	6	287	11,654	11,947
CHANGES DURING THE SIX MONTH ENDED
JUNE 30, 2013 (unaudited):
Profit and comprehensive income for the period			15,392	15,392
TRANSACTION WITH SHAREHOLDERS
Distribution of bonus shares	271	(271)
Dividend			(8,768)	(8,768)
BALANCE AT 30 JUNE 2013 (unaudited)	277	16	18,278	18,571
BALANCE AT 31 DECEMBER 2012 (audited):	6	287	11,654	11,947
CHANGES DURING THE YEAR ENDED
31 DECEBMBER 2013:
Profit and comprehensive income for the year			50,633	50,633
TRANSACTION WITH SHAREHOLDERS
Shares issued (net) of issuance cost	40	22,204		22,244
Bonus Shares issued	271	(271)
Dividend			(16,810)	(16,810)
BALANCE AT 31 DECEMBER 3013 (audited)	317	22,220	45,477	68,014

Plus500 LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2014

	Six months ended			Year ended
	June 30			31 December
	2014		2013	2013
	(Unaudited)			(Audited)
	U.S. dollars in thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash generated from operations (see Appendix A)	73,991		19,296	66,890
Income tax paid - net	(11,117)		(3,607)	(9,894)
Interest received	35		50	101
Net cash flows from operating activities	62,909		15,739	57,097
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(83)		(28)	(75)
Purchase of intangible assets			(17)	(17)
Net cash flows from investing activities	(83)		(45)	(92)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid to equity holders of the Company	(33,007)		(4,874)	(16,810)
Prepaid expenses	-		(578)	-
Proceeds from share issuance, net of $4,600 thousands issuances cost	-		-	21,074
Cash flows from financing activities- net	(33,007)		(5,452)	4,264
NET INCREASE  IN CASH AND CASH  EQUIVALENTS	29,819		10,242	61,269
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	84,108		22,486	22,486
EXCHANGE GAIN (LOSS) ON CASH AND CASH
EQUIVALENTS	1,252		-	353
CASH AND CASH EQUIVALENTS AT END OF PERIOD	115,179		32,728	84,108

Plus500 LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2014

APPENDICIES CONSOLIDATED STATEMENT OF CASH FLOWS

APPENDIX A:

	Six months		Year ended
	ended 30 June		31 December
	2014	2013	2013
	(Unaudited)		(Audited)
	U.S. dollars in thousands
Cash generated from operations -
Net income for the period	53,763	15,392	50,633
Adjustments required to reflect the cash
flows from operating activities:
Depreciation and amortization	52	33	82
Taxes on income	19,373	5,121	16,532
Foreign exchange losses on operating activities	(1,277)	(233)	(590)
Losses (gains) on revaluation of existing deposits	11	(167)	(63)
	18,159	4,754	15,961
Operating changes in working capital:
Decrease (increase) in accounts receivable	290	(1,054)	(2,345)
Increase (decrease) in trade payables due to clients	291	(1,586)	(560)
Increase (decrease) in other accounts payable:
Service supplies	1,168	1,510	3,643
Other	227	205	312
Liability for Share-based compensation	93	75	(754)
	2,069	(850)	296
Cash flows from operating activities	73,991	19,296	66,890

APPENDIX B:

	Six months		Year ended
	ended 30 June		31 December
	2014	2013	2013
	(Unaudited)		(Audited)
	U.S. dollars in thousands
Supplementary information on investing and financing activities not involving cash flows:
Dividend	-	3,894	-

Plus500 LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

NOTE 1 - GENERAL INFORMATION

Plus500 Ltd. (hereafter - the Company) was established in 2008 as a private limited company with the name Investsoft Ltd.  On 18 June 2012 the company changed its name to Plus500 Ltd.  The Company has developed a trading platform for private clients, enabling trading on contracts for differences (hereafter - CFD) on shares, indexes, commodities and foreign exchange. 

On 24 July 2013, the Company's shares were listed for trading on the London Stock Exchange in the Company's initial public offering ("IPO"). As part of the IPO, the Company issued 14,396,775 shares of NIS 0.01 par value in consideration for a gross amount of £ 16,556,291 (about $ 25,000 thousands). Subsequent to the IPO the number of shares is 114,888,377.  The share issue costs amounted to $ 4,600 thousands.

In addition, as part of the IPO, Company shareholders sold 28,793,550 shares to the public in consideration for £ 33,112,583 (about $ 50,000 thousands).

In September 2009, the Company established a subsidiary in the UK (hereafter - the UK subsidiary) in order to be granted an FCA license. The Company and the UK Subsidiary (hereafter - the Group) are engaged in one operating segment - CFD trading - mainly in Europe.

In September 2011 the Company established a subsidiary in Australia (hereafter - AU Subsidiary) in order to obtain an Australian securities and investments commission (hereafter - ASIC) license, which was granted in October 2012.

The AU Subsidiary is engaged in the same field of operations - CFD trading - in Australia and begun operating commencing January 2013.

The address of the Company's principal offices is Building 22, Matam, Haifa 31905, Israel.

NOTE 2 - BASIS OF PREPARATION

These condensed consolidated interim financial statements for the six months ended 30 June 2014 have been prepared in accordance with IAS 34, 'Interim financial reporting'. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with IFRSs.

This condensed consolidated interim financial information is reviewed and not audited.

NOTE 3 - ACCOUNTING POLICIES

a.   Significant accounting policies and computation methods used in preparing the interim financial information are consistent with those used in preparing the 2013 annual financial statements, except for the following:

Income tax in interim periods is recognized based on management's best estimate of the annual income tax rate expected.

Plus500 LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

NOTE 3 - ACCOUNTING POLICIES (continued): 

b.   Amendments to existing standards which are not yet effective and which have not been early adopted by the Group:

1)   IFRS 15 - "Revenue from Contracts with Customers" (hereafter - IFRS 15)

Upon first time application, IFRS 15 shall replace other IFRS provisions relating to revenue recognition.

The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

IFRS 15 sets out a single revenue recognition model, according to which the entity shall recognize revenue in accordance with the said core principle by implementing a five-step model framework:

·    Identify the contract(s) with a customer

·    Identify the performance obligations in the contract

·    Determine the transaction price

·    Allocate the transaction price to the performance obligations in the contract

·    Recognize revenue when the entity satisfies a performance obligation.

IFRS 15 provides guidance about various issues related to the application of the said model, including: recognition of revenue from variable consideration set in the contract, adjustment of the price of transaction set in the contract in order to reflect the effect of the time value of money and costs to obtain or fulfill a contract.

IFRS 15 extends the disclosure requirements regarding revenue and requires, among other things, that entities disclose qualitative and quantitative information about significant judgments made by management in determining the amount and timing of the revenue.

The standard shall be applied retrospectively for annual reporting periods starting on January 1, 2017 or thereafter, taking into account the reliefs specified in the transitional provisions of IFRS 15. Under these provisions, early adoption of the standard is allowed. The Group examines the potential effects of IFRS 15 on its financial statements.

c.   New and amended standards not yet adopted by the Group for reporting periods starting January 1, 2014:

1)  IFRS 9 - "Financial Instruments" (hereafter - IFRS 9).

IFRS 9, 'Financial instruments', addresses the classification, measurement and recognition of financial assets and financial liabilities. IFRS 9 was issued in November 2009 and October 2010. It replaces the parts of IAS 39 that relate to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be classified into two measurement categories: those measured as at fair value and those measured at amortized cost. The determination is made at initial recognition.

The classification depends on the entity's business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity's own credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an accounting mismatch. The Group is yet to assess IFRS 9's full impact. The Group considers the impact of the remaining phases of IFRS 9 when completed by the Board.

Plus500 LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

NOTE 3 - ACCOUNTING POLICIES (continued): 

d.   Subsequent events -

On 12 August 2014, the Company's Board of Directors declared the distribution of a dividend of $0.235 per share, in the total amount of $27,000,000.

NOTE 4 - DIVIDEND

a.   On 18 March 2013, the Company's Board of Directors declared the distribution of a dividend of $2.09 (NIS 7.7) per share, in the total amount of $4,874 thousand.

b.   On 19 June 2013, the Company's Board of Directors declared the distribution of a dividend of $1.67 (NIS 5.99) per share, in the total amount of $ 3,894 thousand.

c.   On 22 August 2013, the Company's Board of Directors declared the distribution of a dividend of $0.07 (NIS 0.25) per share, in the total amount of $ 8,042 thousand.

d.   On 18 February 2014, the Company's Board of Directors declared the distribution of a dividend of $0.2873 (NIS 1.01) per share, in the total amount of $ 33,007 thousand.

Set forth below are the amounts of dividends for the periods:

	Six months		Year ended
	ended 30 June		31 December
	2014	2013	2013
	(Unaudited)		(Audited)
	U.S. dollars in thousands
Date of declaration
18 March 2013		4,874	4,874
19 June 2013		3,894	3,894
22 August 2013		-	8,042
18 February 2014	33,007
	33,007	8,768	16,810

NOTE 5- EARNINGS PER SHARE (basic and diluted)

Earnings per share are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares outstanding during the year.

	Six months		Year ended
	ended 30 June		31 December
	2014	2013	2013
	(Unaudited)		(Audited)
	U.S. dollars in thousands
Profit attributable to equity
holders of the Company	53,763,000	15,392,000	50,633,000
Weighted average number of
ordinary shares in issue	114,888,377	100,491,602	106,730,204

Plus500 LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

* On 24 July 2013, the Company's shares were listed for trading on the London Stock Exchange in the Company's initial public offering ("IPO"). As part of the IPO, the Company issued 14,396,775 shares of NIS

0.01 par value in consideration for a gross amount of £ 16,556 thousands (about $25,000 thousands). Subsequent to the IPO the number of shares is 114,888,377.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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