CMC Markets PBT Soars by 318% YoY in H1 of Fiscal 2020

Online Trading provider CMC Markets has published its interim results for the first half of its 2020 fiscal year this Thursday, which is the six months ended September 30, 2019.

As Finance Magnates reported, when the UK-based firm published its trading update for the same period in early October, the company said that it had achieved a solid performance, due to an uptick in higher valued clients as well as an increase from its technology (B2B) business.

However, the trading update only provided estimates, whereas today, the trading provider has published its actual figures. During the six-month period, the company reported a 45 percent year-on-year uptick in net operating income, coming in at £102.3 million.

Profit before tax soared in the first half of fiscal 2020. In particular, it increased by 318 percent from £7.2 million in the first half of the 2019 fiscal year to £30.1 million in the most recent period.

Contracts for difference (CFD) net client income, however, dropped by 2 percent on an annual comparison down to £96.0 million. CFD net revenue, on the other hand, increased by 35 percent, and CFD revenue per active client was also up 45 percent year-on-year.

In its trading update, CMC Markets expected that CFD net revenue would come in at £85 million ($104.3 million) in H1 2020. This estimation was very close to reality, with the firm reporting revenue of £85.1 million.

CMC Market: clients are adapting to ESMA

The results announced today are quite an achievement for the company, as it is important to keep in mind that the first half of fiscal 2019 only had two months that were subject to the European Securities and Markets Authority’s (ESMA) product intervention measures, whereas the most recent period had all six months subject to the measures.

Since ESMA’s measures were put in place, CMC Markets has been focusing on attracting and retaining high-value clients. Furthermore, changes to its business model have led to the retention of a great portion of client income, the statement said.

Commenting on the results, Peter Cruddas, Chief Executive Officer, 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.”

Online Trading provider CMC Markets has published its interim results for the first half of its 2020 fiscal year this Thursday, which is the six months ended September 30, 2019.