The company reported a pre-tax loss of £2 million.
The number of its active clients declined 7 percent.
CMC Markets (LON: CMC) today (Thursday) released its interim results for the first half of the fiscal year 2024, reporting a decline of 20 percent year-on-year in its net operating revenue to £122.6 million. The brokerage operator turned a pre-tax loss of £2 million for the six months with a negative basic earnings per share of 0.8 pence.
Trading Activities Took a Hit
Headquartered in London, CMC Markets is known for its retail forex and contracts for differences (CFDs) brokerage services. It also offers trading of deliverable equities, along with institutional services.
Trading net revenue, which contributed the most to the total operating revenue, dropped 32 percent to £87.4 million between April and September. Net revenue from the investing stream declined 20 percent to £16.8 million. However, revenue from the “other income” stream surged 338 percent to £18.4 million from £4.3 million, predominately driven by increases in global interest rates.
The company was pushed to further losses with an uptick in operating costs, which came in at £121.9 million compared to £106.3 million. The costs include a £5.3 million impairment relating to internally developed trading platforms for its cash equities offerings.
“Despite the subdued market conditions, we have seen continued commitment from our existing clients and positive engagement in our institutional business,” Peter Cruddas, the CEO of CMC Markets mentioned.
Even with the management's optimism, the client trading assets under management at the end of the first half of the fiscal year declined marginally to £501 million from £506 million. The number of active clients also dropped 7 percent to 46,832.
Outlook Remains the Same
CMC Markets already factored in its performance while lowering its outlook for the fiscal year. It expects its operating income for FY24 to be between £250 million and £280 million, with operating costs of £240 million.
“We continue to widen our trading offering,” the CEO added. “Our geographical diversification has also continued.”
“The power of our technology platform has been central to our ability to expand our offering and provide new products and capabilities for our clients. As these new products come online, we are well positioned to increase synergies across our suite of businesses and drive operational efficiencies.”
CMC Markets (LON: CMC) today (Thursday) released its interim results for the first half of the fiscal year 2024, reporting a decline of 20 percent year-on-year in its net operating revenue to £122.6 million. The brokerage operator turned a pre-tax loss of £2 million for the six months with a negative basic earnings per share of 0.8 pence.
Trading Activities Took a Hit
Headquartered in London, CMC Markets is known for its retail forex and contracts for differences (CFDs) brokerage services. It also offers trading of deliverable equities, along with institutional services.
Trading net revenue, which contributed the most to the total operating revenue, dropped 32 percent to £87.4 million between April and September. Net revenue from the investing stream declined 20 percent to £16.8 million. However, revenue from the “other income” stream surged 338 percent to £18.4 million from £4.3 million, predominately driven by increases in global interest rates.
The company was pushed to further losses with an uptick in operating costs, which came in at £121.9 million compared to £106.3 million. The costs include a £5.3 million impairment relating to internally developed trading platforms for its cash equities offerings.
“Despite the subdued market conditions, we have seen continued commitment from our existing clients and positive engagement in our institutional business,” Peter Cruddas, the CEO of CMC Markets mentioned.
Even with the management's optimism, the client trading assets under management at the end of the first half of the fiscal year declined marginally to £501 million from £506 million. The number of active clients also dropped 7 percent to 46,832.
Outlook Remains the Same
CMC Markets already factored in its performance while lowering its outlook for the fiscal year. It expects its operating income for FY24 to be between £250 million and £280 million, with operating costs of £240 million.
“We continue to widen our trading offering,” the CEO added. “Our geographical diversification has also continued.”
“The power of our technology platform has been central to our ability to expand our offering and provide new products and capabilities for our clients. As these new products come online, we are well positioned to increase synergies across our suite of businesses and drive operational efficiencies.”
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
Tradu Introduces New Crypto Exchange with Competitive Fees
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
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Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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