CMC Markets (LSE: CMCX) announced today (Wednesday) the financial outlook for the first half of the fiscal year 2025. It showcases significant growth and operational efficiency.

The London-based company expects net operating income for the six months ending September 30, 2024, to reach approximately £180 million. This marks a substantial 45% increase from £123 million in the same period last year.

CMC Markets Projects Strong H1 2025 Performance

This growth is attributed to the company's ongoing diversification strategy and expansion in the B2B segment, coupled with sustained client trading activity.

In a notable turnaround, CMC Markets projects a profit before tax of around £51 million for H1 2025, compared to a £2 million loss in the previous year's corresponding period. This recovery underscores the effectiveness of the company's strategic initiatives.

Cost management efforts have also yielded positive results. Operating costs (excluding variable remuneration and non-recurring charges) are expected to decrease by approximately 7% to £113 million, down from £122 million in H1 2024.

“Management remains focused on growing profit margins and taking a disciplined and balanced approach to investment whilst driving efficiencies through the business,” the company commented in the statement.

CMC has been actively enhancing its service offerings, including the expansion of cash equities and options products. Additionally, CMC Markets is preparing to launch cash ISAs in the UK, leveraging its treasury management division and proprietary technology.

Notably, the recently announced partnership with Revolut is progressing. Client onboarding is underway following a soft launch. The number of active trading clients from this partnership is steadily increasing, although specific figures were not disclosed. According to information obtained by Finance Magnates, CMC Connect, the company's institutional arm, may not be included in this transaction.

Record Post-Pandemic Revenue

CMC Markets shared its full results for the fiscal year 2024 in June, which concluded on March 31, 2024. The company, headquartered in London, experienced a 52% increase in adjusted pre-tax profit, benefiting from strong client trading and continued diversification initiatives. Its net operating income climbed by 15% to £332.8 million, propelled by an 11% rise in trading net revenue to £259.1 million.

Both the retail and institutional divisions of the business contributed significantly to this growth, with the institutional segment increasing its share of total net revenue. Conversely, investing net revenue decreased by 10% to £34.0 million, largely due to adverse currency movements, particularly with the Australian dollar.

The latest annual results show a reduction of over 10,000 active customers in FY24 compared to the prior year, a decrease of less than 4%. Nevertheless, this decline was offset by an 18% rise in average revenue per active customer, reaching £4,685. For comparison, Plus500 reported an average revenue per client of about $3,115, significantly higher than the figures from Interactive Brokers and more than six times the average revenue per client of approximately $570 reported by Saxo.

CMC Markets is scheduled to release its full interim results for H1 FY25 on November 21, 2024.