Thursday 19 November 2020 7:41 am

CMC Markets posts record results as pandemic fuels trading activity

CMC Markets enjoyed a bumper start to the year after more than doubling its income in the first half, capitalising on market volatility amid the pandemic. 

The trading platform reported a record £230.9m in net operating income for the six months ended 30 September, up from £102.3m in the same period last year. 

Read more: CMC Markets lifts profit expectations amid high market volatility from Covid-19 pandemic panic

CMC, whose online platforms allow individuals to make leveraged bets on financial markets, also reported a 369 per cent increase in profit before tax in the first half of £141.1m. 

The majority of the net income, some £200.4m, came from contract for differences (CFD) and spread bet net trading revenue. 

Stockbroking net trading revenue was up 82 per cent to £26.3m, driven by an increase in client trading due to heightened market volatility as a result of the pandemic and increases in the client base. 

This “exceptional performance” was underlined by a 42 per cent increase in active clients to 59,082. The cohort of clients acquired since the start of the pandemic “has been significantly larger than prior periods,” CMC said.

CFD gross client income climbed 69 per cent, reflecting an increase in trading while revenue per active client jumped 66 per cent to £3,392. 

Chief executive Peter Cruddas said it was too early to know the full extent of changes in client demand but is “confident in retaining the high-quality clients we target.” 

Read more: CMC Markets continues its strong performance post-lockdown

“We have many opportunities to leverage our technological innovation, quality client service and platform strength, and these will allow us to expand our product portfolio and deliver further profitable growth for the Group. I believe that, based on these competitive advantages, we will be able to provide highly attractive returns for our shareholders over the coming years.” 

CMC has declared a dividend of 9.2 pence per share, a staggering 223 per cent rise on the previous year’s interim dividend of 2.85 pence per share. 

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