(Sharecast News) - Financial trading platform CMC Markets said annual net operating income would be lower than last year as revenues continued to fall in a "challenging" environment.
The company on Friday said subdued market conditions had continued through August with trading and investing net revenues trending 20% lower year-on-year. The news saw investors take flight as the stock plunged almost 10% by the close of trading in London.
"August in particular has seen a more challenging environment with markedly lower monetisation of client trading activity due to a higher proportion of lower margin institutional volume," CMC said.
"Should year-to-date market conditions continue for the remainder of full-year 2024 then it is expected that net operating income will be between £250 and £280m," it added, lower than the £288m reported last year.
The company said key indicators, including client money, assets under administration, and active clients across both the trading and investing businesses "remain robust with no material change seen through recent weeks".
Operating cost guidance was left unchanged at £240m.
Reporting by Frank Prenesti for Sharecast.com
CMC Markets (CMCX)