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CMC Markets Raises Expectations for FY24 Revenue

2024-04-01 Brokersview

Online trading platform CMC Markets has raised its full-year revenue expectations following improved market conditions in the fourth quarter.


The FTSE 250 company expected its net operating income for fiscal 2024 to exceed the top end of its prior guidance of between £290m and £310m.


CMC raised its guidance in January following an increase in platform activity towards the end of last year and a four-month share price high due to heightened market volatility.


CMC Markets said on Wednesday that it continued its "positive momentum" in the fourth quarter, with strong performance in its institutional and B2B businesses due to long-term investments and a strong partnership pipeline. Development upgrades across its platforms had “continued as planned” and it had also “widened its trading offering” last month by rolling out over-the-counter options.


The firm added: “Following the launch of mutual funds in H1, [self-invested personal pensions] accounts are set for imminent release on the Invest UK platform, as part of the ongoing enhancement of the long-term savings proposition.”


Excluding variable remuneration and non-recurring items, CMC said it expected full-year operating costs to be around £240 million, in line with guidance.


Despite recent improvements, the company has been struggling for the past 12 months. In March and August last year, the company issued profit warnings, noting "subdued market conditions". In the first half of this year, the company moved from a 2022 profit of £36.6m to a loss of £2m.


Last month, CMC announced a 17% staff cut, or about 200 positions, to "drive efficiencies and control costs".


“With actions taken as part of the cost reduction and efficiency plans outlined in February 2024, the group continues to identify opportunities for further cost savings across the global business as we focus on improving profit margins,” added the company. 


CMC Markets will announce its full-year results on June 20th.


(Source: Yahoo Finance)