CMC Markets reiterates guidance for FY 2021 net operating income

Maria Nikolova

A trading update for the July-August 2020 period says strong performance continues.

Online trading services provider CMC Markets Plc (LON:CMCX) today issued a trading update for the period from July 1, 2020 to August 31, 2020.

The Group’s strong trading performance across the business has continued, with net operating income run rate for the two month period only slightly below Q1 2021, and client income has continued to be in excess of the same period in the prior year. In addition, client income retention has remained particularly strong and well in excess of the guidance of above 80%. The stockbroking business also continues to perform strongly.

As a result, the Board is confident that with the strong underlying performance and diversity of the business, FY 2021 net operating income will exceed the upper end of current market consensus. This is in line with an earlier guidance issued in July this year.

As at 2 September 2020, the Group’s compiled Full Year 2021 consensus is as follows:

  • Net operating income of £287.6 million, ranging from £282.4 million to £300.6 million; and
  • Profit Before Tax of £122.8 million, ranging from £114.9 million to £137.0 million.

The higher revenue performance since the start of the financial year has been driven by existing clients trading more as well as the platform continuing to attract new clients. This has led to an increase in variable operating costs, predominantly driven by higher client onboarding costs and the more efficient acquisition of new clients.

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