7th Oct 2021 08:46
(Alliance News) - CMC Markets PLC on Thursday reiterated annual guidance despite reporting that interim net trading revenue is expected to be around half of the previous year.
The online trading platform expects net operating income for the six months that ended September 30 to be around GBP126 million - which would be nearly half the GBP230.9 million achieved a year ago. Leveraged net trading revenue is expected to be about GBP100 million, down by a half from GBP200 million in 2021.
Active client numbers were moderately lower in the period from a year before, but increased market activity exiting September led to improved client trading volumes, CMC said.
"We closed the first six months with a pickup in market volatility and client trading volumes following what was a more subdued environment from the start of the year," said Chief Executive Officer Peter Cruddas.
CMC expects full-year net operating income in a range between GBP250 million and GBP280 million. Again, this would be down from the year before, when it achieved net operating income of GBP409.8 million. Interim leveraged gross client income is expected at around GBP127 million, 27% lower than GBP174 million a year before.
Looking ahead, CMC pointed to a diversification drive in winning new business and the positive future effect of its acquisition of ANZ's stockbroking clients.
Shares in CMC Markets were 0.7% lower in London on Thursday morning at 274.98 pence each.
Interim results will be announced on November 17.
By Will Paige; [email protected]
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