CMC Market Soars by 318% on Y-o-Y Interim
CMC Markets recently published its interim results for the first half of 2020. The online trading provider posted a “solid performance” at the same time last year.
However, the current trading update published its actual figures this year as opposed to last year’s estimates.
The company reported a 45% year-on-year uptick in net operating income at £102.3 million.
Profit before tax increased by an astounding 318% from £7.2 million in this year’s first half to £30.1 million.
The online broker has been focusing on gaining and maintaining high-end clients since September. The broker also made changes to its business model, leading to the retention of most client income.
This time last year, the company was under pressure of regulatory changes in the financial sector. Chief Executive Officer Peter Cruddas said they’ve seen clients adapt and maintain interest in their products and services.
Meanwhile, contracts for difference net client income slipped by 2% compared to £96.0 million last year. CFD net revenue increased by 35% while the CFD revenue per active client went up 45%.
CMC Markets expected CFD net revenue at £85 million in next year’s first half.
About the broker
CMC Markets was founded in 1989 by its current CEO under the name “Currency Management Corporation.”
The broker claims to have done the first forex deal over the internet in 1996. CMC became one of the best players in the market with its MarketMaker software platform.
In 2000, the company began to offer CFDs and spread betting on markets, soon becoming the bulk of its profit.
Global financial crises affected much of CMC’s profits in 2008-2013. In retaliation, the company launched its Next Generation trading platform to the UK market.
The London Stock Exchange listed CMC Markets on the main market with an initial capitalization of £691 million in 2016.
CMC Markets was labeled as a “loss-making business” in April 2019 as its CFO & COO Grant Foley left the business. Foley said his resignation was to pursue other opportunities.