CMC Markets Regulatory News (CMCX)

25 July 2019

CMC Markets Plc

Q1 Trading Update

For the three months ended 30 June 2019

CMC Markets Plc ("CMC" or the "Group"), a leading global provider of online trading and institutional ("B2B") platform technology solutions, today issues its first quarter trading update for the three months ended 30 June 2019. 

Net operating income performance has improved in comparison to the three months ended 30 June 2018 driven by higher revenue per active client and an increase in B2B revenues.

As previously guided, operating costs for the financial year ended 31 March 2020 will be marginally higher than the prior year before taking discretionary bonuses into account. While it is still early in the financial year, based on performance year-to-date, the Board remains confident in meeting current Profit Before Tax expectations for the year ended 31 March 20201. 

Peter Cruddas, Chief Executive Officer, commented: 

"I am delighted that CMC's first quarter performance has improved on prior year especially as this year's first quarter included the impact of the new ESMA regulatory changes. Client trading activity in our CFD and spreadbet business has now stabilised as clients adapt to the new regulatory changes.

The Group is also benefitting from growth in our institutional B2B business, all underpinned by our technology, platform and strategy of targeting higher valued experienced clients. This is coming through in a higher revenue per active client and an improvement in our B2B revenues for the quarter.

Our ANZ Bank partnership clearly demonstrates our ability to win business through platform solutions, offering scale and diversity to the business. This will be a major push for the Group going forwards.

I remain confident in our ability to deliver further growth through platform partnerships and our strategy of attracting higher valued experienced clients. With the recent regulatory changes, we believe this is the right strategy for the business going forwards, especially as our platform technology means we are an attractive proposition to a wide array of clients and institutional partners around the world."

Forward looking statements

This trading update may include statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Group undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date such statements are published.

Enquiries

CMC Markets Plc +44 (0) 20 7170 8200

Euan Marshall, Interim Chief Financial Officer

Camarco +44 (0) 20 3757 4980

Geoffrey Pelham-Lane

Ed Gascoigne-Pees

Jennifer Renwick

1. As at 24 July 2019, 2020 consensus for net operating income and Profit Before Tax is £154.0m and £24.6m respectively.

Notes to Editors

CMC Markets plc ("CMC"), whose shares are listed on the London Stock Exchange under the ticker CMCX (LEI: 213800VB75KAZBFH5U07), was established in 1989 and is now one of the world's leading online financial trading businesses. The company serves retail and institutional clients through regulated offices and branches in 13 countries, with a significant presence in the UK, Australia, Germany and Singapore. CMC Markets offers an award-winning, online and mobile trading platform, enabling clients to trade up to 10,000 financial instruments across shares, indices, foreign currencies, commodities and treasuries through contracts for difference ("CFDs"), financial spread bets (in the UK and Ireland only) and, in Australia, access stockbroking services. More information is available at http://www.cmcmarkets.com/group/