Interim results for the six months ended 30 September 2016

Further strategic progress despite subdued trading

For the six months ended
£ million (unless otherwise stated)
30 September 2016 30 September 2015 Change
Net operating income 75.5 78.9 (4%)
Profit before tax 18.8 26.5 (29%)
Earnings per share (pence) 5.1 7.2 (29%)
Number of trades (million) 30.4 33.5 (9%)
Value of trades (£ billion) 911 1,112 (18%)
Active clients (numbers) 47,623 44,017 8%
Client assets 283.3 214.5 32%
Revenue per active client (£) 1,488 1,707 (13%)

Notes:
Net operating income represents total revenue after rebates payable to clients and introducing partners, and betting levies
Active clients represents those individual clients who have traded with or held a CFD or spread bet positions with CMC Markets on at least one occasion during the six month period
Client assets represent total amounts due to segregated clients at the period end
Revenue per active client represents total trading revenue from CFD and spread bet active clients after deducting rebates and levies

Highlights

  • Net operating income down 4% to £75.5 million (H1 FY16: £78.9 million) with revenue per active client down 13% to £1,488
  • Continued growth in active clients, up 8% to 47,623 during H1 FY17
  • Client assets up 32% to £283.3 million (H1 FY16: £214.5 million)
  • Underlying operating costs up 9% to £53.6 million (H1 FY16: £49.1 million), reflecting investment in headcount and marketing to support strategic growth initiatives
  • Underlying profit before tax down 28% to £18.8 million (H1 FY16: £26.2 million)
  • Regulatory total capital ratio of 30% with own funds of £165.9 million
  • Interim dividend of 2.98 pence (33% of FY16 full year ordinary dividend)

Strategic progress

  • Established markets: Growing market share with active clients up 3% although value of client trades down 15%
  • Geographic expansion: New Poland office opened in October 2015 performing in line with expectations, building a platform for future growth across Eastern Europe. France office, value of client trades up 37%
  • Digital initiatives: New opened accounts up 15% driven by improvement in online advertising, websites and application forms which are optimised for mobile devices
  • New products: Binaries released in April 2016 and Knockouts launched in Germany in October 2016 – all designed, built and delivered in-house. Binaries and Countdown revenue £4.1 million, 26% higher than H2 FY16
  • Institutional offering: New API connectivity delivered, along with Next Generation white and grey label, resulting in an increase in the value of client trades of 34%

Peter Cruddas, Chief Executive Officer, commented:
“Our first half net operating income reduced due to lower client trading activity, as experienced by the wider market and highlighted at our AGM trading update on 7 September 2016. However, we continue to make significant strategic progress, delivering against our five pillars of growth. We are growing our active client base through retail and institutional channels, rolling out new products and platform enhancements and looking at opportunities to develop our international footprint.”

Analyst and investor presentation

A presentation will be held for equity analysts and investors today at 11:00 a.m. (GMT).

A live webcast of the presentation will be available via the following link:

https://www.cmcmarkets.com/results/2017/h1

Alternatively, you can dial into the presentation:

United Kingdom: 020 3059 8125
All other locations: + 44 20 3059 8125
Please quote “CMC Markets plc H1 2017 Results conference” when prompted.

Forthcoming announcements

26 January 2017 Q3 2017 interim management statement
30 March 2017 FY 2017 pre-close update

Media enquiries

Camarco

Geoffrey Pelham-Lane/Ed Gascoigne-Pees/Jennifer Renwick Tel: 020 3757 4994

This website uses cookies to improve your experience and access our trading platform. You can manage cookies in your browser settings or continue to use the site as normal.

x