CMC Markets (LSE: CMCX) has reported a remarkable financial recovery for the first half of its fiscal year 2025, turning a previous £2 million loss into an estimated £51 million profit. The London-based brokerage attributes this success to a strong focus on cost management and strategic expansion in its business-to-business (B2B) segment.
Impressive Revenue Growth
For the six months ending September 30, 2024, CMC Markets projects net operating income of approximately £180 million, a 45% increase compared to £123 million in the same period last year. This growth is driven by ongoing diversification efforts, a boost in client trading activity, and the successful launch of new products.
Strategic Focus on Efficiency
A key factor behind the improved performance is tighter cost control. Operating expenses, excluding one-time charges and variable compensation, are expected to decrease by around 7% to £113 million, compared to £122 million in H1 2024. According to the company, management is committed to expanding profit margins while maintaining a balanced approach to investments and operational efficiencies.
New Offerings and Strategic Partnerships
CMC Markets has been expanding its product range, adding cash equities and options to its lineup. In addition, the company is preparing to roll out cash ISAs in the UK, utilizing its treasury management capabilities and proprietary technology.
Another highlight is its recent partnership with fintech firm Revolut. Client onboarding has already started, with the number of active trading clients gradually increasing. Although specific figures were not disclosed, the collaboration is expected to drive long-term growth for both companies.
Record-Breaking Results in 2024
Earlier this year, CMC Markets reported strong annual performance for the fiscal year ending March 31, 2024. The company achieved a 52% increase in adjusted pre-tax profit, reaching £332.8 million in net operating income, supported by robust client trading and successful diversification strategies.
Both its retail and institutional divisions contributed to this growth, with the institutional segment expanding its share of the company’s overall net revenue. Meanwhile, its investment division saw a 10% decline in net revenue due to unfavorable currency fluctuations, especially with the Australian dollar.
Client Metrics and Future Outlook
Although CMC Markets experienced a drop of over 10,000 active customers in FY24, this decline was balanced by an 18% rise in average revenue per client, reaching £4,685. This figure is significantly higher than many competitors in the industry. The company aims to maintain this momentum through continued product innovation and strategic partnerships.
CMC Markets will release its full interim results for the first half of FY25 on November 21, 2024, providing further insights into its ongoing transformation and financial outlook.
