The publicly-listed online trading platform (LSE: CMCX), announced today (Thursday) that its first-quarter performance for fiscal year 2025 (FY25) was in line with management expectations. The company is on track to achieve its projected net operating income of £320–360 million for the full year.

CMC Markets Sees £360M Revenue Potential

In the newest trading update, CMC Markets reported consistent progress on its institutional and business-to-business (B2B) strategy, highlighting the recent partnership announcement with fintech giant Revolut. The initial onboarding of Revolut clients has begun, with some already actively trading on the platform.

The company emphasized its focus on driving cost efficiencies and expanding profit margins, particularly in the institutional and B2B segments. Management reaffirmed its guidance for fiscal year 2025, projecting net operating income between £320–360 million on a cost base of approximately £225 million, excluding variable remuneration and non-recurring charges.

CMC Markets plans to provide further details on the Revolut partnership and its performance during the half-year results announcement in November. The company has also scheduled its H1 2025 pre-close trading update for October 9, 2024.

CMC Connect, the institutional arm of the popular UK-based broker, announced the collaboration with Revolut in mid-June. This partnership involves integrating multiple APIs to allow fintech customers seamless access to CMC's trading platforms directly through the neo-banking app. This strategic move aims to enhance user experience and broaden market access.

Sustaining Strong Performance

The latest trading update came one month after CMC Markets disclosed its highest net operating income since the onset of the COVID-19 pandemic for the fiscal year ending March 31, 2024.

The company reported a 52% surge in adjusted pre-tax profits, buoyed by client trading activities and strategic diversification initiatives. Net operating income climbed 15% to £332.8 million, with trading net revenue up 11% at £259.1 million. This robust performance was evident across both retail and institutional segments, with the latter increasingly contributing to the total net revenue.

“Over the past year, a recovery in client trading, combined with our diversification strategy through B2B technology and an institutional first approach, has delivered strong growth and opened up many opportunities for the company around the world,” said CMC Markets CEO Lord Cruddas.

However, investing net revenue saw a decline of 10% to £34.0 million, largely attributed to the depreciation of the Australian dollar.

Meanwhile, Susanne Chishti announced her decision to step down as a Non-Executive Director at CMC, after over two years in the role. According to June’s official statement, she will continue in her position until the end of the Annual General Meeting scheduled for today, July 25, 2024