CMC Markets H1 profit "significantly higher" but cautious on outlook
CMC Markets said on Thursday that profitability in the first half of 2018 was "significantly higher" than a year ago, but the spreadbetting firm sounded a cautious note on the outlook on the back of regulatory uncertainty.
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The group said both net operating income and revenue per client were higher in the six months to 30 September than in the same period a year ago, driven by increased client volumes. Meanwhile, active contracts-for-difference and spreadbet clients were slightly lower than in the first half of last year following the short-term interest seen around the EU referendum.
CMC said costs in the second half were expected to rise through investment in key marketing initiatives and the ongoing implementation of the group's stockbroking partnership with ANZ Bank in Australia, which remains on track for delivery next year.
It added that regulation was still a key focus. "Despite profitability in H1 2018 being significantly higher than the same period in 2017, the firm remains cautious about the future outlook given the ongoing regulatory uncertainty and the impact, if any, potential changes could have on group performance."
At 0805 BST, the shares were up 5.6% to 162.75p.