CMC Markets shared its interim results for the first half of the fiscal year 2024 (FY2024) today, revealing a 20% year-on-year decline in net operating revenue to £122.6 million. The brokerage operator experienced a pre-tax loss of £2 million for the six months, accompanied by a negative basic earnings per share of 0.8 pence. The decline in net operating revenue was primarily because of a 32% drop in trading net revenue. This contributed the most to the total operating revenue, falling to £87.4 million between April and September. Net revenue from the investing stream also saw a 20% decrease to £16.8 million.
CMC Markets Reports 20% Decline in H1 FY2024 Net Revenue
In contrast, the “other income” stream witnessed a remarkable surge of 338%, reaching £18.4 million from £4.3 million. However, despite this positive development, an uptick in operating costs, totaling £121.9 million compared to £106.3 million, pushed the company further into losses. The costs included a £5.3 million impairment related to internally developed trading platforms for its cash equities offerings.
CMC Markets CEO Peter Cruddas acknowledged the subdued market conditions but expressed satisfaction with the continued commitment from existing clients and positive engagement in the institutional business. Despite management’s optimism, client trading assets under management at the end of the first half of the fiscal year saw a marginal decline to £501 million from £506 million. Additionally, the number of active clients dropped by 7% to 46,832.
Addressing the company’s outlook, Cruddas stated, “We continue to widen our trading offering. Our geographical diversification has also continued.” CMC Markets had already factored in its performance while adjusting its outlook for the fiscal year. It anticipates operating income for FY24 to be between £250 million and £280 million, with operating costs totaling £240 million.
“The power of our technology platform has been central to our ability to expand our offering and provide new products and capabilities for our clients. As these new products come online, we are well positioned to increase synergies across our suite of businesses and drive operational efficiencies,” the CEO added.
Also, Stay Updated with the Latest Broker News.