London-listed CMC Markets announced strong interim results for the half-year ended 30 September 2024 on Thursday, with significant improvements in profitability and revenue.
CMC Markets Posts Pre-Tax Profit, Jump in Net Operating Income
The financial services firm reported a pre-tax profit of £49.6 million, a stark contrast to the £2 million loss recorded in the same period last year. The company said this was due to the combination of robust net operating income and disciplined cost management.
Net operating income surged 45% to £177.4 million, which the company said was driven by growth across the institutional segment and an increase in client trading activity.
Trading net revenue increased by 50% to £131.3 million, while investing net revenue rose 19% to £19.9 million. The company also benefited from a 46% increase in interest income to £23.4 million, driven by higher global interest rates and strong performance from its newly established Treasury Management and Capital Markets Division.
CMC Markets has been investing in its business to drive growth and efficiency. Operating costs, excluding variable remuneration, decreased by 9% to £111.4 million.
The company has also strengthened its position in the market through partnerships with Revolut and ASB Bank, expanding its product offerings and targeting new client segments.
Looking ahead, CMC Markets remains confident in meeting its full-year guidance, with net operating income expected to be in line with market consensus.
Operating cost guidance for FY 2025 remains unchanged at £225 million, excluding variable remuneration and non-recurring charges.
Lord Cruddas, Chief Executive Officer of CMC Markets, commented: “As we announced in the previous financial year, CMC has reached the peak of the investment cycle and whilst we continue to invest in the business, we are taking a disciplined approach, and we remain laser focused on driving further efficiencies across our global operations as we continue to leverage our scale and technology.”
