Q3 2019 trading update

24 January 2019

CMC Markets Plc (LSE:CMCX, “CMC” or “the Group”), a leading global provider of online trading, today issues a trading update covering the period from 1 October to 31 December 2018 (“the Period”).

Market conditions improved in Q3, following the particularly challenging Q2, with market events and trade tensions driving client activity, particularly in Indices. This translated into Q3 CFD net revenue performance showing a significant improvement in comparison to Q2, although, as expected, revenue remains down year-on-year in line with previous guidance.

This has been the first full quarter following the implementation of the ESMA measures and this is providing greater insight into client behaviour following the changes. Encouragingly, clients are continuing to trade when opportunities arise and retail client activity has remained steady throughout the period with client money remaining at similar levels to the first half.

As the Group enters the final quarter of the financial year, it continues to improve its understanding of, and adapt to, changing client behaviour following regulatory change. The Group has made an encouraging start to Q4, which together with CMC’s ongoing focus on operating cost control, means that the Group’s FY 2019 outlook is unchanged. In the medium-term CMC remains well positioned to benefit from its increasingly diversified revenue streams across institutions and stockbroking as well as further geographic expansion.

Peter Cruddas, Chief Executive Officer commented:

“After the first full quarter following the introduction of the ESMA measures, we now have a better understanding of changing client behaviour and are adapting our model accordingly. I founded this business in 1989 and we have weathered many changes in the financial markets and their regulation during my time as CEO. I have confidence that over time, CMC will benefit from these changes and I remain fully committed to the business and its future potential. CMC continues to benefit from a more diverse revenue portfolio across our institutional and stockbroking businesses, and I am delighted with the progress our ANZ Bank white label stockbroking partnership is making.”

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.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is considered to be in the public domain.


CMC Markets Plc +44 (0) 20 7170 8200
Grant Foley, Chief Operating and Financial Officer

Camarco +44 (0) 20 3757 4980
Geoffrey Pelham-Lane
Ed Gascoigne-Pees
Jennifer Renwick

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