CMC Markets lifts guidance for FY net operating income
By Michele Maatouk
Date: Thursday 21 Nov 2019
(Sharecast News) - Online trading platform CMC Markets lifted its annual guidance for net operating income on Thursday and reported a jump in interim profit as clients adapt to regulatory changes.
In the six months to the end of September, pre-tax profit surged 318% to £30.1m, while net operating income rose 45% to £102.3m. Basic earnings per share pushed up 252% to 9.5p and the dividend per share was lifted to 2.85p from 1.35p.
CMC said its "strong" performance was driven by higher contract-for-difference revenue per active client, which was up 45% to £2,047 thanks to improving retention of CFD client income, and a 164% increase in stockbroking net revenue.
Following the ongoing strong CFD net revenue performance at the start of the second half of the year, the company said it now expects annual net operating income in excess of £180m, up from a forecast of in excess of £170m in October.
Chief executive officer Peter Cruddas said: "I am pleased with the strong first half performance. This time last year we had the uncertainty of regulatory change overhanging the sector with the client response to the changes in minimum margin levels unclear. A year on, we are seeing clients adapt, maintaining their interest in the products and the trading platforms we offer.
"It is clear that we are becoming more than a CFD business with income also being derived from technology partnerships, such as the ANZ deal. This is an exciting area of the business which will continue to grow through further planned partnerships and ongoing investment to improve the offering."
At 0950 GMT, the shares were up 4.2% at 131.53p.
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