CMC Markets Hails Strong Year-End As Income Set To Rise Significantly

29th Mar 2018 09:52

LONDON (Alliance News) - Online trading platform CMC Markets PLC said Thursday its "strong" performance in the year to date was maintained in its final quarter ending Saturday as its Australian partnership continues to progress.

CMC expects net operating income to be "significantly" higher than the prior year after a strong second half performance. In financial 2017, CMC reported net operating income of GBP160.8 million alongside a pretax profit of GBP48.5 million.

"The proportion of high value clients has increased," CMC explained in a statement, "driving a significant improvement in revenue per client compared to the prior year. Overall, active client numbers are slightly below the previous year although the final quarter has seen an increase from the prior year."

Costs are expected to be higher in the second half of the year, however, reflecting higher marketing and discretionary remuneration as well as costs for developing its partnership with ANZ Bank. The ANZ collaboration is expected to begin delivering in September.

In March 2017, CMC said it has formed a "major stockbroking partnership" with Australia & New Zealand Banking Group Ltd which would see it become the second-largest stockbroker in Australia by both number of clients and trades executed.

The partnership is forecast to increase CMC's stockbroking business by AUD40.0 million, CMC said at the time the deal was announced.

CMC will release its final results on June 7.

Shares in CMC were 9.0% higher at 169.20 pence on Thursday.

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