RE: Trading update3 Sep 2020 09:06
LONDON BRIEFING: Incoming FTSE 250 Member CMC Markets Raises Outlook
Thu, 3rd Sep 2020 07:56Alliance News
(Alliance News) - CMC Markets on Thursday said its "consistently strong trading performance" has continued, a day after FTSE Russell announced the online trading firm will be joining the FTSE 250 later this month.
CMC said net operating income run-rate for the two months to the end of August was only slightly below the first quarter, and client income has continued to be "in excess" of a year ago.
"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," said CMC.
Net operating income consensus, the firm noted, is around GBP287.6 million, ranging between GBP282.4 million to GBP300.6 million.
The 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 customers, CMC added, which has led to an increase in variable operating costs.
CMC's update comes after FTSE Russell said the stock is set for a promotion to the FTSE 250 effective from the market open on Monday, September 21.
As part of its quarterly review late Wednesday, FTSE Russell also said broadcaster ITV will drop out of the FTSE 100, to be replaced by retailer B&M European Value Retail.