CMC Markets Initiates Client Onboarding with Revolut: H1 Trading Revenue Up 50%

The trading revenue of CMC Markets (LON: CMCX) in the six months between April and September 2024 increased by 50 per cent to £131.3 million. It also confirmed that client onboarding with Revolut began following a soft launch earlier this year.

Finance Magnates interviewed two CMC executives earlier, who explained the details of the Revolut deal.

Profit on a Strong Revenue

Returning to the numbers, the London-headquartered broker also earned £19.9 million from investing net revenue and another £23.4 million from interest income. Overall, its net operating revenue rose to £177.4 million, 45 per cent higher than the corresponding half of the previous fiscal year and in line with its previous projection of £180 million.

The broker attributed the increase in revenue to “continued growth across the institutional segment and an increase in client trading activity.”

Similarly, the broker’s pre-tax profits for the six months came in at £49.6 million, slightly below the expectation of £51 million. It recovered from a £2 million loss in the same period of the previous year.

This also boosted the company's profit-loss margin to 28 per cent from negative 2 per cent in the first half of FY24. With a basic earnings per share of 12.8 pence, the broker also decided to distribute 3.10 pence in dividends per share compared to 1 pence per share in the corresponding period of the last fiscal year.

“CMC has reached the peak of the investment cycle,” said Lord Cruddas, CMC’s CEO, adding, “Whilst we continue to invest in the business, we are taking a disciplined approach, and we remain laser-focused on driving further efficiencies across our global operations as we continue to leverage our scale and technology.”

Confident on Guidance

The broker’s management is also optimistic about meeting the guidance of net operating income. It kept its operating cost guidance for the fiscal year at £225 million unchanged.

“We remain confident in meeting the guidance set earlier this year, with net operating income expected to be in line with market consensus, supported by a strong pipeline of B2B partnerships and ongoing product expansion and diversification,” Lord Cruddas added.

Meanwhile, the broker has also been strengthening its geographical coverage. Recently, it entered into a long-term strategic partnership with ASB Bank, a major financial institution in the country with around 1.5 million customers, and will offer the bank its its white-label technology.