CMC Markets Reports a Dip in Profits and Revenues on Quiet Markets

CMC Markets reports its full year outcome for 2017, trading volumes decline modestly.

Foreign exchange, CFDs and spread betting provider CMC Markets has just reported its full year results. Fiscal 2017, that ended on March 31st 2017, has proved to be a challenging year for the brokerage as revenues from spreads and commissions declined.

CMC Markets posted a 5 percent decline in revenues for a total of £169 million, while profits and earnings per share each decreased 9 percent to £48.5 million and 13.7 pence.

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Looking at Key Performance Indicators (KPIs), the total number of trades executed by clients of CMC Markets declined 6 percent to 62.7 million. The total value of trades also declined, albeit more modestly, by 3 percent to £2.02 trillion. This makes for £168 billion ($217.8 million) of monthly trading volumes.

While the number of active clients increased by 5 percent to 60,082, the average revenue per active client declined 11 percent to £2,517 ($3,261).

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Over Half of Trading Done via Mobile

Clients of CMC Markets transacted about 52 percent of their deals via mobile devices, a figure which is continuing to show how important mobile is for brokers in the retail trading industry.

The institutional segment of the company posted an increase of 82 percent in the value of client trades.

CMC Markets is posting a cautiously optimistic outlook for 2018 as the company’s first months of the fiscal year are looking better when compared to the same period a year ago. The firm did not express any explicit worries about the FCA’s ruling on new regulations for the industry. The brokerage highlighted that it expects that the new regulatory framework will lead to “an improvement in industry practices and positions the company well for the future.”

“Clearly regulatory change is likely to have some impact on the business but we believe we are well positioned to benefit from market share gains in the medium to long term, with our ability to adapt our leading proprietary technology and focus on client service and regulatory compliance supported by our financial strength,” commented the CEO Peter Cruddas.

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