CMC Markets’ Final Quarter Boosts

CMC Markets has published its financial results for its fiscal year, ending on the 31st of March 2020, on Thursday. It has revealed a strong year for the company, boosted by COVID-19 volatility in the final quarter of the year.

Over the 12-month period, net operating income for the online trading provider was £252 million. When measured against the same period of the previous year, net operating income has increased by 93 percent.

Profit before tax also increased in the 2020 fiscal year. It rose from £6.3M in the 2019 fiscal year, up to £98.7M representing a 1,459 percent increase year-on-year.

The Earnings per share (EPS) figure was also significantly better on a yearly comparison. It came in at 30.1 pence, higher than the 2.0 pence in the fiscal year of  2019 by 1,405%.

CMC Markets Posts 95% Increase in CFD Revenues

The gross client income from Contracts for difference (CFD) showed CMC Markets posting an income of £240.6 million in the fiscal year of 2020. Comparing this with the £216.1 client income posted in 2019, client income has risen by a total of 11 percent.

CFD net trading income achieved annual growth of 95 percent. This was in the 12-month period ending on the 31st of March 2020. It climbed from £110.2 million in 2019 to reach £214.5 million in 2020.

Also, CFD active clients increased by 7 percent to hit 57,202 during the year. Moreover, CFD revenue per active client soared by 81 percent on a yearly measurement, reaching £3,750. 

Peter Cruddas, Chief Executive Officer of CMC Markets, commented on this significant performance improvement in 2020. He said it is a result of the Group’s unwavering focus on its strategic initiatives. 

It delivered increased diversification of Group revenues, improved CFD client income retention, and an increased number of active clients. What is also particularly pleasing is the growing contribution of B2B revenues. It will continue to be an important part of our strategy going forward.