CMC Markets continues its strong performance post-lockdown
Spread betting and trading platform CMC Markets today said its strong performance during lockdown had continued during the summer months.
The company said it is confident that its 2021 financial year net operating income will exceed the upper end of current market consensus.
The coronavirus selloff in March helped bolster CMC’s income by 93 per cent to £252m in the first quarter.
CMC said its net operating income run rate for the two month period was only slightly below the first quarter in July and August and said client income continued to be ahead of the same period the previous year.
The company said client income retention “has remained particularly strong” and was “well in excess” of the guidance of above 80 per cent.
CMC said its stockbroking business had also continued to perform strongly.
The company said its increase in clients had led to an increase in variable operating costs, “predominantly driven by higher client onboarding costs and the more efficient acquisition of new clients”.
CMC said it is continuing its focus on investment in its technology to “attract and retain clients and drive future growth”.
CMC’s online trading platforms allows individuals to make leveraged bets on financial markets.
A volatile period for global markets, which began with a huge selloff in March, has proved beneficial for CMC and its rivals Plus500 and IG Group.
Plus 500 unveiled stellar numbers for the first half of the year earlier this month with profit growing 452 per cent on the back of increased market volatility.
Plus 500 boosted revenue 281 per cent to $564.2m (£431.6m) in the six months to 30 June. The company grew earnings 452 per cent to $361.8m during the period.