CMC Markets Saw its Revenue Surge by 135%
Thanks to its focus on high-value clients, CMC Markets filed a 135% increase in CFD revenue for H1 2020. Unlike most of its peers, the firm was confident in projecting its solid full-year guidance for its fiscal 2021
Sales of contracts for differences (CFDs) were around 200 million pounds, an increase from last year’s 85 million. Now, the firm expects a revenue increase from 14 million pounds to 26 million pounds for the first quarter in 2021.
According to the brokerage, this could be a result of continuing growth with its white-label partnership with ANZ Bank. This would bring its operating costs up to 80 million pounds, up form 65 million pounds in H1 2020.
Naturally, CMC CEO Peter Cruddas thanked the firm’s diversification and continued focus on high-value clients. This strategy benefitted the company throughout coronavirus-led volatility as client activity increased significantly.
The company now expects to continue its focus throughout next year, where it projects strong full-year results. It expects net income to record 239.9 million pounds ranging from 321.0 million pounds to 348.7 million pounds.
CMC in 2020
CMC Markets has been one of the brightest companies throughout the pandemic. Neil Vinall, who had just been promoted to the director of operations, will help the company continue its strong performance.
Vinall succeeded Dave Worsfold after 10 years in the company since he began working as its Head of Operations. Vinall had been a part of the firm’s regulatory reporting, payments, and reconciliation services beforehand.
The company more than doubled its annual net trading revenue in the first quarter in a yearly comparison. This was the first few months of the coronavirus pandemic, when it was at its peak.
CMC is now a member of the FTSE 250, an index that shows the largest companies on the London Stock Exchange. This shows that the firm is now one of the 101st to the 350th largest publicly quoted qualities in the United Kingdom.
