CMC Markets Regulatory News (CMCX)

23 January 2020

CMC Markets Plc

Q3 Trading Update

For the three months ended 31 December 2019

CMC Markets Plc ("CMC", the "Group" or the "Company"), a leading global provider of online trading and institutional ("B2B") platform technology solutions, today issues its third quarter trading update for the three months ended 31 December 2019 ("Q3" or the "Period").

Net operating income continued to outperform expectations in Q3 2020. The strong performance was driven by higher retention of client income in comparison to H1 2020. This resulted in higher revenue per active client despite lower client income due to the weaker market conditions throughout much of the quarter.

Outlook 

Q4 2020 has started well and in conjunction with the Q3 2020 performance, the Board remains confident in the ongoing strong revenue performance for the full year, with net operating income expected to be ahead of the upper end of the current range of analyst forecasts1. 

As previously guided, operating costs excluding variable remuneration for the financial year ended 31 March 2020 are expected to be moderately higher than the prior year.

Peter Cruddas, Chief Executive Officer, commented:

"CMC's performance continued to be strong during the third quarter. I am delighted that our strategy is delivering excellent results, as we continue to grow and diversify both our B2B and B2C businesses.

We continue to have confidence in our ability to deliver further growth through platform partnerships and our strategy of attracting higher valued experienced clients. With the recent and forthcoming regulatory changes, we continue to 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 experienced clients and institutional partners around the world. We look forward to building on this momentum over the coming year." 

Upcoming results 

CMC expects to announce its full year pre-close trading update on 3 April 2020. 

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.

1. As at 22 January 2020, company compiled full year 2020 consensus is as follows:

·; Net operating income of £187.5m, ranging from £184.1m to £189.3m

·; Profit Before Tax of £43.1m, ranging from £38.6m to £45.5m

Enquiries

CMC Markets Plc investor.relations@cmcmarkets.com

Euan Marshall, Chief Financial Officer

Camarco +44 (0) 20 3757 4980

Geoffrey Pelham-Lane

Ed Gascoigne-Pees

Jennifer Renwick

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 12 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/