CMC Markets Posts 1,459% YoY Uptick in PBT in 2020 Fiscal Year
- The online trading provider saw a boost in the final quarter of its 2020 fiscal year, driven by COVID-19.
CMC Markets has published its financial results for its fiscal year ended on the 31st of March, 2020 this Thursday, revealing a strong year for the Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term provider, boosted by COVID-19 Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in the final quarter of the year.
For the 12 month period, net operating income for the UK-headquartered trading provider was £252 million. When measuring this against the same period of the previous year, net operating income has increased by 93 per cent.
Profit before tax also skyrocketed in the 2020 fiscal year, increasing from £6.3 million in the 2019 fiscal year, up to £98.7 million. This represents an uptick of 1,459 per cent year-on-year.
Earnings per share (EPS) were also significantly higher on a yearly comparison - coming in at 30.1 pence. This is higher than the 2.0 pence in fiscal 2019 by 1,405 per cent.
CMC Markets posts 95% uptick in CFD revenues
Taking a look at contracts for difference (CFD) gross client income, CMC Markets posted income of £240.6 million in fiscal 2020. Weighing this against the £216.1 client income posted in fiscal 2019, client income has risen by 11 per cent.
CFD net trading income achieved an annual growth of 95 per cent in the 12 month period ended on the 31st of March 2020, climbing from £110.2 million in 2019 to reach £214.5 million in 2020.
CFD active clients increased by 7 per cent to hit 57,202 during the year, and CFD revenue per active client soared by 81 per cent on a yearly measurement, reaching £3,750.
Commenting on the performance Peter Cruddas, Chief Executive Officer of CMC Markets said in the statement: “... The significant performance improvement in 2020 is a result of the Group’s unwavering focus on our strategic initiatives. This has delivered increased diversification of Group revenues, improved CFD client income retention and an increased number of active clients. The growing contribution of B2B revenues is also particularly pleasing and will continue to be an important part of our strategy going forward.
“The heightened volatility and trading activity resulting from COVID-19 has continued into the first quarter of the financial year, and CMC continue to provide clients with market leading trading platforms and client service. I am also confident that, once the financial world returns to more normal conditions, the Group will continue to build on the underlying growth that was being displayed prior to the pandemic. This, in combination with our stable dividend policy and positive trading outlook, will enable CMC to continue to deliver considerable value to all of our stakeholders.”
CMC Markets has published its financial results for its fiscal year ended on the 31st of March, 2020 this Thursday, revealing a strong year for the Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term provider, boosted by COVID-19 Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in the final quarter of the year.
For the 12 month period, net operating income for the UK-headquartered trading provider was £252 million. When measuring this against the same period of the previous year, net operating income has increased by 93 per cent.
Profit before tax also skyrocketed in the 2020 fiscal year, increasing from £6.3 million in the 2019 fiscal year, up to £98.7 million. This represents an uptick of 1,459 per cent year-on-year.
Earnings per share (EPS) were also significantly higher on a yearly comparison - coming in at 30.1 pence. This is higher than the 2.0 pence in fiscal 2019 by 1,405 per cent.
CMC Markets posts 95% uptick in CFD revenues
Taking a look at contracts for difference (CFD) gross client income, CMC Markets posted income of £240.6 million in fiscal 2020. Weighing this against the £216.1 client income posted in fiscal 2019, client income has risen by 11 per cent.
CFD net trading income achieved an annual growth of 95 per cent in the 12 month period ended on the 31st of March 2020, climbing from £110.2 million in 2019 to reach £214.5 million in 2020.
CFD active clients increased by 7 per cent to hit 57,202 during the year, and CFD revenue per active client soared by 81 per cent on a yearly measurement, reaching £3,750.
Commenting on the performance Peter Cruddas, Chief Executive Officer of CMC Markets said in the statement: “... The significant performance improvement in 2020 is a result of the Group’s unwavering focus on our strategic initiatives. This has delivered increased diversification of Group revenues, improved CFD client income retention and an increased number of active clients. The growing contribution of B2B revenues is also particularly pleasing and will continue to be an important part of our strategy going forward.
“The heightened volatility and trading activity resulting from COVID-19 has continued into the first quarter of the financial year, and CMC continue to provide clients with market leading trading platforms and client service. I am also confident that, once the financial world returns to more normal conditions, the Group will continue to build on the underlying growth that was being displayed prior to the pandemic. This, in combination with our stable dividend policy and positive trading outlook, will enable CMC to continue to deliver considerable value to all of our stakeholders.”