CMC Markets, a leading global provider of online trading and investing services, has reported impressive financial results for FY24, surpassing its competitor Plus500 in per-client revenue. Despite a decline of over 10,000 active customers, CMC Markets achieved an 18% increase in average revenue per active customer, reaching £4,685. This figure significantly outpaces Plus500’s average revenue per client of approximately $3,115.
The Numbers
The company’s net operating income rose by 15% to £332.8 million, exceeding its earlier guidance of £290-£310 million. Trading revenue also increased by 11% to £259.1 million. Although revenue from stockbroking and related services decreased by £3.9 million due to a weaker Australian dollar, this was offset by a £22.3 million rise in ‘other income’ to £39.7 million.
CMC Markets has undertaken a comprehensive cost review program, resulting in a reduction of around 220 staff, approximately 18% of its global workforce. This initiative aims to drive margin expansion by optimizing spending in areas like premises costs, vendor rationalization, and capital allocation. The company’s Q1 2025 trading update highlighted ongoing efforts to enhance cost efficiencies, particularly in the institutional and B2B sectors.
CEO Peter Cruddas emphasized the company’s progress in the B2B and institutional business segments, where competition is limited. Laurence Booth, head of capital markets at CMC Markets, noted the importance of a fully integrated multi-asset, multi-currency platform in meeting diverse client needs. This approach allows CMC to stay ahead of demand for various asset types and leverage operational efficiencies.
Interest income contributed £35 million to CMC’s financial performance, benefiting from higher interest rates on its own and clients’ cash. The company’s adjusted profit before tax increased to £80 million, up from £52.6 million in 2023, while profit before tax rose by 21% to £63.3 million.
CMC Markets has also expanded its geographical reach, with 56% of net revenue generated outside the UK and Europe, compared to 49% in 2023. Key developments include the launch of CMC Invest Singapore and the expansion of its Dubai subsidiary in the DIFC. The addition of new products, such as cash equities, index options, cryptocurrencies, and money market investments, has further fueled growth.
Despite a £31.8 million drop in total segregated client money, CMC remains focused on its institutional and B2B strategy. The recent partnership with Revolut and the onboarding of Revolut clients underscore the company’s commitment to expanding its client base and service offerings.
