Net revenue

CMC Markets sees 45% drop in first half net sales, living up to expectations

CMC Markets (LON: CMCX) has published its interim results for the six months between April and September, reporting net operating income of £ 126.7million, which is in line with the company’s expectations.

The operating result for the half-year was down 45 percent from £ 230.9 million the previous year. Revenue from CMC’s leveraged trading activities fell 50% to £ 101million, while net non-leveraged trading revenue fell 8% to £ 24.2million.

The group’s pre-tax profit was £ 36 million, 74% lower than the profit generated in the first half of the previous year. In addition, basic earnings per share fell from 38.3 pence to 9.6 pence.

Better than pre-pandemic levels

Although the London-based company’s financial measures have pulled back sharply from the peak reached in 2020, the latest figures are well above pre-pandemic levels.

Compared with figures from April to September 2019, recent net income rose 24% and pre-tax profits jumped 20%.

“I am very pleased to see that the company is performing well above pre-pandemic levels across all of our lines of business,” said Lord Cruddas, CEO of CMC. “This is a testament to the resilience and quality of our platform and our offering. “

Additionally, Wednesday’s official announcement detailed that the number of active leveraged clients fell 9% year-on-year to 53,834 with leveraged income per client of £ 1,877, or 45%. less than the previous year.

However, the number of active clients without leverage increased by 10% to an absolute figure of 185,847.

Meanwhile, CMC plans to separate its leveraged and non-leveraged activities with the formation of two entities. According to the company, this will maximize shareholder value.

“We believe it is fair for us to assess the viability of the business segregation in order to unlock significant value within the current Group structure,” added Lord Cruddas.

CMC Markets (LON: CMCX) has published its interim results for the six months between April and September, reporting net operating income of £ 126.7million, which is in line with the company’s expectations.

The operating result for the half-year was 45 percent down from £ 230.9 million the previous year. Revenue from CMC’s leveraged trading activities fell 50% to £ 101million, while net non-leveraged trading revenue fell 8% to £ 24.2million.

The group’s pre-tax profit was £ 36 million, 74% lower than the profit generated in the first half of the previous year. In addition, basic earnings per share fell from 38.3 pence to 9.6 pence.

Better than pre-pandemic levels

Although the London-based company’s financial measures have pulled back sharply from the peak reached in 2020, the latest figures are well above pre-pandemic levels.

Compared with figures from April to September 2019, recent net income rose 24% and pre-tax profits jumped 20%.

“I am very pleased to see that the company is performing well above pre-pandemic levels across all of our lines of business,” said Lord Cruddas, CEO of CMC. “This is testament to the resilience and quality of our platform and our offering. “

Additionally, Wednesday’s official announcement detailed that the number of active leveraged clients fell 9% year-on-year to 53,834 with leveraged income per client of £ 1,877, or 45%. less than the previous year.

However, the number of active clients without leverage increased by 10% to an absolute figure of 185,847.

Meanwhile, CMC plans to separate its leveraged and non-leveraged activities with the formation of two entities. According to the company, this will maximize shareholder value.

“We believe it is fair for us to assess the viability of the business segregation in order to unlock significant value within the current Group structure,” added Lord Cruddas.