CMC Markets Reports First Half Loss, but Remains Optimistic

by Warren Seah

CMC Markets, the London-based online trading platform, recently announced a pretax loss of £2.0 million ($2.5 million) for the first half of fiscal 2024. The company attributed this loss to low client activity and challenging market conditions. However, despite this setback, CMC Markets maintains its full-year guidance and remains optimistic about the future.

Financial Performance

In the six-month period ended September 30, CMC Markets experienced a significant decline in net operating income, which fell by 20% to £122.6 million. This decline was primarily driven by a 32% drop in trading net revenue and a 20% fall in investing net revenue. The company attributes these decreases to reduced client activity and uncertain market conditions stemming from inflationary pressures and higher interest rates.

Group revenue also declined during this period, dropping to £119.7 million compared to £171.6 million in the previous year.

CEO’s Remarks

Peter Cruddas, Chief Executive of CMC Markets, acknowledged the challenging market conditions but highlighted the continued commitment from existing clients and positive engagement in their institutional business. He expressed confidence in the company’s ability to navigate these conditions successfully.

Dividend Announcement

CMC Markets declared an interim dividend of 1.00 pence, representing a substantial 71% decrease from the previous year’s interim dividend of 3.50 pence.

Future Outlook

Looking ahead, CMC Markets expects net operating income in the range of £250 million to £280 million, with operating costs estimated at £240 million. The company reassured investors that it is on track to meet the current market expectations for fiscal 2025.

CMC Markets’ dedication to providing high-quality financial services and its positive performance in the face of challenging market conditions make it a promising player in the online trading industry.

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