CMC Markets, a London-based company, recently released a trading update that highlighted its net operating income is tracking in line with market expectations for the ongoing financial year, which will end on March 31st. The company experienced weak operating income towards the end of 2022 but saw a strong recovery in January. Key metrics such as monthly active clients, client money, and assets under administration remained stable compared to the first half of the fiscal year. In the first half of FY23, CMC reported a 21% yearly increase in its net operating income, which came in at £153.5 million. However, while net operating income jumped 27% to £128.4 million, net revenue from the investing stream declined by 14% to £20.8 million.
The company is expecting its new business expansion to grow its revenue by 30% over the next three years, based on its performance in FY2022. In July, CMC updated its expected FY23 operating costs to be £215 million, which is 5% higher than the previously provided annual guidance. The management expects to close the year with operating expenditures along the same lines.
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In the latest update, CMC also announced that it has received in-principle regulatory permission from Singapore for the launch of CMC Singapore Invest, which will expand the geographical reach of CMC Invest, a stock trading platform that the group launched in October in the UK. CMC UK Invest is also continuing its expansion with the recent addition of ETFs and ISAs and has added functionalities to show ESG data.
Overall, CMC Markets CEO Lord Cruddas said, “2023 is set to be an exciting year for CMC as we continue our growth strategy,” and looks forward to updating the market further at the full-year results later this year.
