23rd Jan 2020 08:57
(Alliance News) - Online trading platform CMC Markets PLC on Thursday said it had a "strong" third quarter and expects a sharp earnings rise in the full-year.
In the three months to December 31, net operating income "outperformed expectations".
CMC explained: "The strong performance was driven by higher retention of client income in comparison to the first half of the year. This resulted in higher revenue per active client despite lower client income due to the weaker market conditions throughout much of the quarter."
CMC added its fourth quarter has "started well" and the firm held its full-year guidance.
Chief Executive Peter Cruddas said: "CMC's performance continued to be strong during the third quarter. I am delighted that our strategy is delivering excellent results, as we continue to grow and diversify both our business-to-business and business-to-consumer businesses."
Net operating income for the year to March 31 is expected to come in at GBP187.5 million, at the upper end of the GBP184.1 million and GBP189.3 million analyst range.
It would represent a 43% hike from GBP130.8 million from the year prior, which was hampered by "market conditions and regulatory change".
Pretax profit is also expected to climb, to GBP43.1 million, CMC said, in line with the consensus range of GBP38.6 million and GBP45.5 million. Pretax profit in the prior year came in at GBP6.3 million.
Costs for the current financial year are expected to be "moderately higher", however.
CMC shares were 0.6% higher at 161.40 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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