CMC Markets, a global provider of online trading and technology solutions, issued a trading update for the third quarter of the financial year, encompassing the period from 1 October 2020 to 31 December 2020. The London-based company reported strong performance for the period driven by high client income retention.
CMC Markets revealed that the business performed well in Q3 with high active client numbers, although at lower levels than earlier in the financial year. The group reported that client income retention remained in excess of 80%, but below the levels reported for H1 2021.
In the first half of the FY 2020, the CMC Market’s revenue from CFDs jumped 135% to around £200 million.
The group stressed the importance of investment in platform technology in attracting and retaining premium clients and reported it is exploring opportunities to continue to grow and diversify this business
Peter Cruddas, Chief Executive Officer, commented:
Peter Cruddas Source: LinkedIn
I’m delighted by our performance, and as we enter our final financial reporting quarter, we are focusing on delivering on our premium client strategy through technology, service and a resilient trading platform. In addition, we have a healthy pipeline of projects that will drive new revenue streams, which I will talk more about in the next financial year.
In addition, continued investment in our risk infrastructure is delivering latency reduction and pricing and execution efficiencies. This allows us to capture a higher percentage of our premium client income especially during volatile market conditions.
The company’s confidence in full year income has grown and it has boosted its expectations. CM Markets reported net operating income is expected to be £376.6 million, ranging from £370.2 million to £387.5 million. The expected Profit Before Tax would reach £197.2 million, ranging from £191.3 million to £206.3 million.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.