CMC Markets Suffers £2M Pre-tax Loss in H1 FY2024, with Operating Revenue Down 20%

On November 16, 2023, CMC Markets released its interim results for the first half of the 2024 fiscal year, with net operating income down 20% year-on-year (YoY) to £122.6 million. For H1 FY2024, the brokerage operator registered a pre-tax loss of £2.0 million and a negative basic earnings per share of 0.8 pence.

Headquartered in London, CMC Markets is known for providing retail forex and CFD brokerage services. It also offers deliverable stock trading and institutional services.

Net trading income, the largest contributor to the total operating income, fell by 32% between April and September to £87.4 million. Net income from the investment category fell by 20% to £16.8 million. However, “other income” revenue surged 338% from £4.3 million to £18.4 million.

The company made further losses as a result of higher operating costs, which rose from £106.3 million to £121.9 million. These costs include a £5.3 million impairment relating to internally developed trading platforms for cash equities offering.

“Despite the subdued market conditions, we have seen continued commitment from our existing clients and positive engagement in our institutional business,” Peter Cruddas, the CEO of CMC Markets mentioned.

Despite the management's optimism, client trading assets under management at the end of H1 FY2024 fell slightly from £506 million to £501 million. The number of active clients also decreased by 7% to 46,832.

CMC Markets has taken its performance into account while lowering its FY2024 outlook. It expects FY24’s operating revenue to be in the range of £250 million to £280 million, with operating costs of £240 million.

“We continue to widen our trading offering,” the CEO added. “Our geographical diversification has also continued.”

“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.”

(Source: Finance Magnates)