CMC Markets (LON: CMCX) published its financials for the fiscal year of 2023 (FY 2023), ending on March 31, reporting a net income of £288.4 million, in line with the company’s guidance for the year. The figure came in 2 percent higher year-over-year. However, the profits went down significantly.

CMC Markets Posts FY23 Results

The brokerage operator generated £233.1 million, which is an uptick of 1 percent, as trading net revenue representing CFD and spread bet, whereas the net revenue from investing stream went down 21 percent to £37.9 million. It generated £13.9 million from interest income, compared to £0.8 million in the previous year. Income from ‘other’ streams remained flat at £3.5 million.

The London-headquartered company ended last financial year with a pre-tax profit of £52.2 million, which is 43 percent lower than FY 2022. In addition, its basic earnings per share decreased 40 percent to 14.7 pence. The public-listed company will continue distributing dividends but 40 percent lower at 7.4 pence per share.

The other performance parameters of the brokerage platform came in mixed. While the number of active traders decreased 9 percent to 58,737, the trading revenue per client jumped 11 percent to £3,968. On top of that, the trading client retention slipped to 77 percent from 80 percent. On the other hand, the trading gross client income jumped 5 percent to £303.5 million.

The number of active investing clients on CMC also dropped 11 percent to 218,310.

“During the past year, we have made progress to refine and deliver our diversification strategy,” said CMC Markets’ CEO, Lord Cruddas.

“We have improved our product range across our core trading CFD and spread bet businesses, offering our clients access to a wider range of financial instruments through our award-winning platforms. We have leveraged our existing technology to launch a new investment platform in the UK, with a Singapore platform launching imminently, as well as opening a new office in Dubai to support the rapid growth we are seeing in our institutional business.”

Outlook for the Ongoing Year

CMC revealed that the quiet market conditions in the first two and a half months of FY 2024 resulted in the trading activity descending 15 to 20 percent and impacting the company’s Q1 net income. However, its projections of 30 percent net operating income growth from 2022 to 2025 remain unchanged.

Furthermore, the company will prioritize expanding its product range this year, which will include cash equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term, index options, listed futures, cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, and a wider range of investment products. It will also invest in its institutional offering to upgrade the product suite.

“CMC is changing quickly,” Lord Cruddas added. “Over the course of the next 12 months, we plan to introduce a new multi-asset platform capable of trading a much wider range of instruments.”

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