Plus500's profit hit by Euro 2024 championship distraction
Flags impact of Euro 2024 on Q2
Shares fell as much as 4.5%
CEO targets potential expansion via acquisitions
Recasts first paragraph and headline, adds CEO, CFO quotes
By Yamini Kalia
July 8 (Reuters) -Online trading platform Plus500 PLUSP.L posted a fall in its second-quarter core profit on Monday, saying it had been hurt by lower levels of activity across markets in recent weeks due to the Euro 2024 soccer tournament.
The company said it might see a similar but muted impact from the Olympic Games, which start later this month, on the company's performance in the second half of the year.
Shares of the London-listed company fell as much as 4.5% to 2,210 pence in morning trade, among the top percentage losers on the FTSE Midcap .FTMC index.
"Usually in the past, it (Olympic Games) was less significant than the soccer championships," said Elad Even-Chen, Plus500's CFO in a call with Reuters.
The upcoming U.S. elections and possible Federal Reserve interest rate cuts will help offset the impact, Even-Chen added.
The company reported core profit of $81.3 million for the second quarter, which came below first-quarter numbers of $102.6 million.
Second-quarter revenue also took a considerable hit to $182.6 million from $215.6 million in the first quarter.
The Israel-based company operates a trading platform for financial products including shares, exchange-traded funds (ETFs), indices, commodities and currencies across 60 markets in the UK, Europe and Asia.
"We are actively looking for potential acquisitions either for new licences, or for new products to expand geographically and product wise," said CEO David Zruia.
Core profit for the six month trading period ended June 30 came to $183.9 million, while margins fell 2%.
Plus500 said it expects revenue and core profit for 2024 to be in-line with the market view.
Last month, rival CMC Markets CMCX.L forecast higher operating income in fiscal 2025 after a 52% jump in annual profit, buoyed by strong retail and institutional trading and tight cost control measures.
Reporting by Yamini Kalia in Bengaluru; Editing by Rashmi Aich and Keith Weir
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