London-listed CMC Markets (LSE: CMCX) has issued a trading update for the first quarter of the financial year 2022 on Thursday, which runs between April and June. The broker highlighted that it has ‘continued to perform well’.
The company detailed that the overall monthly active client numbers increased a third from the pre-pandemic levels, remaining at a similar level to the numbers posted in the previous year.
Further, it elaborated that its client base is showing characteristics, in terms of their trading activity, similar to the traders onboarded over prior years.
CMC, which offers Forex and CFDs trading along with several other financial products, has gained extensively with the influx of retail traders. The broker posted a net operating income of £409.8 million in the last financial year, while the pre-tax profits spiked by 127 percent to touch £224 million.
Strong Outlook
Though the broker did not reveal any figures for the most recent quarter, its board is expecting to achieve a net operating income of more than £330 million in the ongoing financial year.
The projection is made based on strong business metrics. Moreover, CMC detailed that it successfully retained 80 percent of its client income, thus matching its target. However, the operating expense in Q1 FY2022 can mount year-over-year as the broker increased its workforce, especially strengthening its non-leveraged investment teams.
“I'm pleased with our start to this financial year following a record FY 2021. The team is focused on continuing to provide an excellent service to our clients, both in terms of uptime and providing an innovative, market-leading platform,” CMC Markets CEO, Lord Cruddas said in a statement.
“I remain confident in the outlook for CMC as we continue to make progress with our strategic initiatives as set out in our recent full-year results, and I look forward to updating the market further on these at our half-year results later this year.”
