CMC Markets Raises FY2024 Income Forecast to £290M-£310M

CMC Markets Plc released an optimistic trading update for the fiscal year 2024 (FY24) ending March 31, 2024. The listed retail broker expects to achieve net operating income that is £40 million higher than previously expected.

CMC Markets delivered a strong performance in the third quarter of FY24, driven by improved market conditions and increased contribution from its B2B and institutional business. The Group benefited from its long-term investments in this business area.

CMC Markets now expects FY24 net operating income to be in the range of £290-£310 million, up from its previous estimate of £250-£280 million, as a result of strong growth in the third quarter.

CMC Markets said its core key performance indicators remain strong, including client funds, assets under management, and active clients in its trading and investment operations.

The Group's operating cost expectations for FY2024, excluding variable remuneration, remain unchanged at £240 million. CMC Markets will provide a further update in its pre-close update on April 9, 2024.

The company reported a 20% year-on-year (YoY) decline in net operating income to £122.6 million. This downturn was marked by a pre-tax loss of £2 million and a negative basic earnings per share of 0.8 pence. Net trading income, a main contributor to total operating income, fell 32% to £87.4 million.

(Source: Finance Magnates)