Q3 2020 trading update

23 January 2020

CMC Markets Plc ("CMC", the “Group” or the “Company”), a leading global provider of online trading and institutional (“B2B”) platform technology solutions, today issues its third quarter trading update for the three months ended 31 December 2019 (“Q3” or the “Period”).

Net operating income continued to outperform expectations in Q3 2020. The strong performance was driven by higher retention of client income in comparison to H1 2020. This resulted in higher revenue per active client despite lower client income due to the weaker market conditions throughout much of the quarter.

Outlook


Q4 2020 has started well and in conjunction with the Q3 2020 performance, the Board remains confident in the ongoing strong revenue performance for the full year, with net operating income expected to be ahead of the upper end of the current range of analyst forecasts1.

As previously guided, operating costs excluding variable remuneration for the financial year ended 31 March 2020 are expected to be moderately higher than the prior year.

Peter Cruddas, Chief Executive Officer, commented:


“CMC’s performance continued to be strong during the third quarter. I am delighted that our strategy is delivering excellent results, as we continue to grow and diversify both our B2B and B2C businesses.

We continue to have confidence in our ability to deliver further growth through platform partnerships and our strategy of attracting higher valued experienced clients. With the recent and forthcoming regulatory changes, we continue to believe this is the right strategy for the business going forwards, especially as our platform technology means we are an attractive proposition to a wide array of experienced clients and institutional partners around the world. We look forward to building on this momentum over the coming year.”

Upcoming results


CMC expects to announce its full year pre-close trading update on 3 April 2020.

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.

  1. As at 22 January 2020, company compiled full year 2020 consensus is as follows:
    • Net operating income of £187.5m, ranging from £184.1m to £189.3m
    • Profit Before Tax of £43.1m, ranging from £38.6m to £45.5m

Enquiries


CMC Markets Plc investor.relations@cmcmarkets.com
Euan Marshall, Chief Financial Officer

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

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