CMC Markets, a London-based brokerage, reported a significant 50% increase in trading revenue for the six months ending September 2024, reaching £131.3 million. The broker also confirmed that it has begun onboarding clients through its partnership with Revolut, following a soft launch earlier this year.
Strong Revenue and Profit Recovery
The broker’s total net operating revenue for the first half of fiscal year 2024 rose by 45% to £177.4 million, driven by increased institutional activity and higher client trading volumes. This includes £19.9 million from investing net revenue and £23.4 million from interest income.
CMC Markets recorded a pre-tax profit of £49.6 million for the period, a strong recovery from a £2 million loss in the same period last year. Although slightly below the projected £51 million, the results marked a significant turnaround, with the profit margin improving to 28% compared to a negative 2% margin a year earlier.
Basic earnings per share stood at 12.8 pence, and the company announced a dividend of 3.10 pence per share, a notable increase from the 1 pence per share distributed in the same period last year.
CEO’s Vision and Strategic Investments
Lord Peter Cruddas, CEO of CMC Markets, emphasized that the company has reached the peak of its investment cycle. He stated, “While we continue to invest in the business, we are taking a disciplined approach and remain focused on driving efficiencies across our global operations as we leverage our scale and technology.”
The broker remains confident in meeting its fiscal year guidance, maintaining its operating cost projection at £225 million. Management also expects net operating income to align with market consensus, supported by a growing pipeline of B2B partnerships and continued product diversification.
Strengthening Global Reach
In addition to the Revolut partnership, CMC Markets has been expanding its geographic presence. The broker recently entered a long-term strategic partnership with ASB Bank, a leading New Zealand financial institution with 1.5 million customers. Under this partnership, CMC will provide its white-label technology to ASB Bank.
These developments underline CMC Markets’ commitment to innovation and growth, both in terms of technology and market coverage, as it continues to strengthen its position in the global financial trading landscape.
