CMC Markets Beats Expectations in Q3 of 2020 Fiscal Year

CMC Markets Plc has published its third-quarter trading update for the company’s 2020 fiscal year this Thursday, with the global provider of online trading looking to outperform its expectations for the period.

The third quarter of CMC Market’s 2020 fiscal year is the three months that ended on the 31st of December 2019. After reporting a solid performance in the first half of its fiscal year, the company has yet again outperformed its expectations for the third quarter.

In particular, net operating income has beat the trading provider’s expectations for Q3 of 2020. Although the firm has not provided the exact figures, it has outlined that the solid performance was driven by higher retention of client income in comparison to H1 2020.

The higher retention has also resulted in higher revenue per active client. This comes despite the fact the CMC Markets saw lower client income during the period, which was pushed down due to weaker market conditions throughout the quarter.

CMC Markets 2020 forecasts

As of the 22nd of January 2020, the company-compiled full-year 2020 consensus is net operating income of £187.5 million, ranging from £184.1 million to £189.3 million. Profit Before Tax is expected at £43.1 million, ranging from £38.6 million to £45.5 million.

Commenting on the performance, Peter Cruddas, Chief Executive Officer, said in its statement: "CMC's performance continued to be strong during the third quarter. I am delighted that our strategy is delivering excellent results, as we continue to grow and diversify both our B2B and B2C businesses.

“We continue to have confidence in our ability to deliver further growth through platform partnerships and our strategy of attracting higher valued experienced clients. With the recent and forthcoming regulatory changes, we continue to believe this is the right strategy for the business going forwards, especially as our platform technology means we are an attractive proposition to a wide array of experienced clients and institutional partners around the world. We look forward to building on this momentum over the coming year."

The final quarter of the 2020 fiscal year has started well, according to the company’s statement. This solid start, in conjunction with the performance in the third quarter, has made the Board confident in its ongoing strong revenue performance for the full year.