After reporting a significantly weak financial performance for its 2019 fiscal year, CMC Markets has published its first-quarter trading update for the three months ended June 30, 2019, through the London Stock Exchange (LSE) this Thursday.
Although the trading update does not give any specific figures, the UK-based financial derivatives dealer does state that overall, the first-quarter performance has improved on a year-on-year comparison.
Namely, the statement says that net operating income performance has improved when measuring it against the same quarter in 2018. This improvement was driven by higher revenue per active client and an increase in B2B revenues, without giving specifics.
CFD and spread bet business stabilizes for CMC Markets
Speaking on the update, Peter Cruddas, Chief Executive Officer (CEO) said that client trading activity in the firm’s contract-for-difference (CFD) and spread bet business has now stabilized, as clients are adapting to the new regulatory changes.
“The Group is also benefitting from growth in our institutional B2B business, all underpinned by our technology, platform and strategy of targeting higher valued experienced clients. This is coming through in a higher revenue per active client and an improvement in our B2B revenues for the quarter,” Cruddas said.
Operating costs for the financial year ended March 31, 2020, will be marginally higher than the prior-year, the statement said. Despite this, the Board remains confident in its ability to meet Profit Before Tax expectations for the 2020 fiscal year.
“I remain confident in our ability to deliver further growth through platform partnerships and our strategy of attracting higher valued experienced clients. With the recent regulatory changes, we believe this is the right strategy for the business going forwards, especially as our platform technology means we are an attractive proposition to a wide array of clients and institutional partners around the world," added Cruddas.
As Finance Magnates reported, CMC Market reported weak results for its financial year ended on March 31, 2019. During the year, net operating income declined by 30 percent to £56.3 million, while the bottom line dropped by 90 percent to £6.3 million.
