CMC Markets warns of operational challenges in Q1

abdelaziz Fathi

CMC Markets PLC (LSE:CMCX) said in a trading update for the fiscal year 2023 that February and March posed a more challenging environment with lower equity volumes and a higher proportion of lower margin institutional trading activity.

The spread betting and online trading company expects its FY 2023 net operating income to be between £280-290 million. It also warned on higher costs, prompting analysts to slash their earnings forecasts. Specifically, CMC’s board expects FY 2023 operating costs excluding variable remuneration to be in the range of £215-220 million.

“Development upgrades across both its investing and trading platforms continue and the expansion in the institutional business remains on track. CMC’s diversification strategy in its investment business advances with CMC UK Invest expanding its offering and with the recent award of its regulatory licence, CMC Singapore Invest is due to go live over coming months,” it added.

The listed brokerage firm said earlier its net operating income was weaker towards the end of the calendar year, but it recovered strongly in January. Monthly active clients, client money and assets under administration in CMC’s investing and trading businesses remain stable versus H1 2023.

The firm’s notable updates included a regulatory grant in-principle for the launch of CMC Singapore Invest, marking another milestone in CMC’s geographical expansion. CMC says the move comes as the firm continues to diversify and expand its geographic footprint through its technology, leveraged institutional offering, and non-leveraged platforms.

The company also highlighted the development upgrades across both its investing and trading platforms continue. Specifically, its UK non-leveraged platform for its British staff, CMC Invest, expanded its offering with the recent addition of ETFs, ISAs as well as responsible ESG screening functions. CMC noted that the platform will offer both B2C and B2B potential to the wider market.

CMC Markets kept its guidance for the current year unchanged. The online trading and investment broker confirmed its plans to grow net operating income by 30% over three years based on the 2022 results and underlying conditions.

The listed brokerage firm announced its FY H1 2023 net operating income at £153 million, up 21 percent from £127 million a year earlier and also hitting a record performance outside the Covid-19 pandemic.

CMC said it achieved a gross leveraged client income of £155, representing a 22 percent year-on-year decline compared to its £127 million intake in 2021.

Read this next

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

<