22nd Feb 2019 14:55
LONDON (Alliance News) - Foreign exchange company CMC Markets PLC on Friday said it continues to adapt the business to the changing client behaviour, with revenue in January and February experiencing challenging conditions.
Furthermore the company lowered its guidance for contracts-for-difference and spreadbet revenue.
CMC Markets shares dropped 19% trading at 94.49 pence each on Friday afternoon.
Depending on the trading conditions in the remainder of the quarter, CMC now expects CFD and spreadbet revenue to be between 25% and 35% lower year-on-year, compared to previous guidance of a 20% reduction year-on-year.
"Following an encouraging start to the fourth quarter, market conditions have been challenging from a revenue perspective in January and February 2019, with exceptionally strong client performance, particularly around commodities and FX," the company said.
Client turnover decreased in the period since the start of the year, due to narrower daily ranges in major products.
"We have continued to build our understanding of client behaviour under the new regulation in these different market conditions, and continue to adapt accordingly," CMC added.
Looking at financial 2020, the company made no changes to its forecast, with the group guiding for net operating income to be in line with current market expectations.
CMC expects to report its pre-close trading update for financial 2019 on April 3.
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