CMC Markets Profitability Higher Despite Lower Number of Active Clients in H1

Online FX, CFDs and spread betting brokerage CMC Markets (LON:CMCX) has just published an upbeat guidance for the company’s results in the first half of fiscal 2018. The firm is registering “significantly higher profitability” when compared to last year.

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This comes despite the massively volatile Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term event which was key to profitability during the same period of fiscal 2017. The company outlines in its trading update filing with the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term that both its net operating income and revenue per client are higher year-on-year and marginally higher than in the second half of fiscal 2017.

The increase has been driven by rising trading volumes. The text in the trading update confirms what seems to be a turn in the volume trends set out earlier in the year with September on track to be a record month at a number of brokerages.

While the number of active traders at CMC Markets (LON:CMCX) slightly declined year-on-year, this is primarily due to the base effects of the Brexit referendum around the same time last year. CMC Markets expresses that its targeting of higher-value clients appears to be paying off as its revenue per client metric confirms. The full details will be released at the end of November.

CMC also outlines that its operation costs have been unchanged when compared to a year ago. In the second half of its fiscal year, the company is planning to increase marketing spending and the implementation of its stockbroking partnership in Australia with the ANZ Bank. The brokerage is expecting to roll out its solution next year.

The brokerage expresses caution when touching on the subject of regulatory developments. Despite the increasing profitability of recent months, the firm is reserved about the future due to the ongoing discussions amongst European regulators.