CMC Markets forecasts net operating income of over £330M for FY 2022
UK online broker CMC Markets Plc (LON:CMCX) today issued a trading update for the period from 1 April 2021 to 30 June 2021 (Q1 2022).
In Q1 2022, CMC has continued to perform well. Overall monthly active client numbers remained at similar levels as reported in 2021, which were up around a third from pre-pandemic levels. As previously stated, whilst client trading activity has moderated from average FY 2021 levels CMC’s latest client cohort continues to show characteristics similar to those of clients onboarded over prior years.
In addition, client income retention remained in excess of 80%, but below the levels reported for FY 2021, as previously guided.
Q1 2022 operating costs track moderately higher year over year as guided due to a higher headcount, specifically talent for CMC Markets’ new non-leveraged investment platform.
The Group continues to have confidence in the robust underlying performance of the business and in conjunction with further progress on its strategic initiatives, including the ongoing development of the non-leveraged investment platform, looks forward to continuing to generate long-term business growth and value.
As a result, CMC Markets says its Board remains confident in achieving net operating income in excess of £330 million for FY 2022.
Lord Cruddas, Chief Executive Officer, commented:
“I’m pleased with our start to this financial year following a record FY 2021. The team is focused on continuing to provide an excellent service to our clients, both in terms of uptime and providing an innovative, market-leading platform.
I remain confident in the outlook for CMC as we continue to make progress with our strategic initiatives as set out in our recent full year results and I look forward to updating the market further on these at our half year results later this year.”
Let’s recall that, for the full year to March 31, 2021, CMC Markets reported income beating forecasts.
Net operating income increased to £409.8 million, up £157.8 million (63%) from the result recorded in the preceding year.
CFD revenue per active client rose 22% to £4,560, driven by improved CFD client income retention, whereas the number of CFD active clients increased by 19,389 (34%) partially driven by increased levels of interest in the financial markets from a new wave of clients.
Stockbroking net trading revenue jumped 72% to £54.8 million supported by higher client numbers (up 28%) and the increasing appeal of the international shares offering.
The broker continued its investment in proprietary technology platforms to diversify the offering, with new Dynamic Trading and Spot FX offerings launched in May and June 2021 respectively, along with a native mobile app for Stockbroking in March 2021.