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CMC markets reports 93% growth in operating income



The global provider of online trading CMC Markets Plc (NYSE:CMC) announced its results for the financial year ended 31 March 2020.

The company reported net operating income growth of 93% to £252.0 million and profit before tax £98.7 million.

The highlights of the financial year include

  • CFD revenue per active client rose 81% to £3,750, primarily as a result of improved retention of CFD gross client income.
  • CFD active clients was up by 3,894 (7%), demonstrating the continuing attractiveness of the platform.
  • Stockbroking net trading revenue leaped 106% to £31.8m driven by a combination of a full year of revenues for the ANZ Bank partnership, higher market volatility in Q4 and successful product launches.
  • The Group continues to invest in its proprietary technology platforms to diversify its offering and generate value through institutional relationships.
  • ANZ Bank white label partnership generated £22.3 million net revenue in 2020.
  • Operating expenses increased by 23% to £151.3 million, predominantly due to higher variable remuneration as a result of the significantly improved performance in FY20. Variable remuneration, whilst being significantly higher year on year, is in line with comparable prior years.
  • Operating expenses excluding variable remuneration rose 14% to £137.3 million.
  • Profit before tax jumped 1,459% to £98.7 million (2019: £6.3 million).

Peter Cruddas, Chief Executive Officer said:

Peter Cruddas, CMC Markets
Peter Cruddas

During these extraordinarily difficult times, I would like to take the opportunity to convey my sympathies to everyone who has been impacted by the COVID-19 pandemic. I am extremely proud of the resilience and dedication shown by all of my colleagues at CMC, who are contributing to ensuring that our clients are able to trade throughout a period of extraordinarily high volume and volatility in global markets.

The heightened volatility and trading activity resulting from COVID-19 has continued into the first quarter of the financial year, and CMC continue to provide clients with market leading trading platforms and client service. I am also confident that, once the financial world returns to more normal conditions, the Group will continue to build on the underlying growth that was being displayed prior to the pandemic. This, in combination with our stable dividend policy and positive trading outlook, will enable CMC to continue to deliver considerable value to all of our stakeholders.

 

Year ended
£ million (unless otherwise stated)
2020 2019 Change %
Net operating income 252.0 130.8 93%
Profit before tax 98.7 6.3 1,459%
Earnings per share (pence) 30.1p 2.0p 1,405%
Ordinary dividend per share (pence) 15p 2.0p 640%
CFD gross client income 240.6 216.1 11%
CFD net trading revenue 214.5 110.2 95%
CFD active clients (numbers) 57,202 53,308 7%
CFD revenue per active client (£) 3,750 2,068 81%
Stockbroking net trading revenue 31.8 15.5 106%

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