Wed, February 21, 2024

CMC Markets Records H1 Loss, Trading Revenue Dips by 32%

Broker News

CMC Markets [LON: CMC] posted its H1 2024 financial report this Thursday, revealing a 20% YoY dip in net operating revenue, landing at £122.6 million. The firm, specializing in forex and contracts for differences (CFDs) brokerage services, suffered a pre-tax loss of £2 million within these six months, resulting in a negative 0.8 pence basic earnings per share.

Trading Business Suffers

Located in London, CMC Markets has a diverse portfolio, including deliverable equities and institutional services. From April to September, their primary source of operating revenue, trading net revenue, fell by 32% to £87.4 million. The investing stream’s net revenue decreased by 20% to £16.8 million. However, the ‘other income’ category saw a massive increase of 338% to £18.4 million, primarily due to rising global interest rates.

Added operating costs of £121.9 million, an increase from the previous £106.3 million, pushed the company into deeper losses. These costs included an impairment of £5.3 million for self-developed trading platforms tied to their cash equities offerings.

Peter Cruddas, CEO of CMC Markets, stated previously, “Our clients’ loyalty and positive reception in our institutional business persisted despite the sluggish market conditions.” Yet, client trading assets under management at the fiscal year’s H1 end slipped slightly to £501 million from £506 million. Active clients also saw a downtrend, dropping 7% to 46,832.

Forecast Unchanged

The anticipated operating income for FY24, between £250 million and £280 million, and operating costs of £240 million were already considered in the updated outlook by CMC Markets.

CEO Peter Cruddas mentioned earlier, “We kept expanding our trading services. Our geographical diversification efforts have been ongoing.” He added, “Our tech platform’s strength is pivotal in offering new products and broadening our capabilities to our clients. As these products launch, we expect to boost synergies across our businesses and improve operational efficiency.”

 

YOU MAY ALSO LIKE

Wibest – Microsoft

Quick Look Microsoft acquires Activision Blizzard for $69 billion, marking a significant

gas

Quick Look Standard Chartered forecasts a significant call on OPEC at 1.8

Hong Kong and tech companies

Quick Look Hong Kong introduces a revised Capital Investment Entrant Scheme (CIES).

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Unlock Success: Marketrocks’ 2000+ Trading Instruments

Embarking on a narrative about Marketrocks, we delve into the essence of what makes this trading platform a beacon for investors navigating the tempestuous seas of the financial markets. This reimagined exploration aims

BROKER NEWS

Broker News

Unlock Success: Marketrocks’ 2000+ Trading Instruments

Embarking on a narrative about Marketrocks, we delve into the essence of what makes this trading platform a beacon for investors navigating the tempestuous seas of the financial markets. This reimagined exploration aims to