CMC Markets has recorded a first-half profit, marking a successful turnaround

October 09, 2024 10:28 PM AEDT | By Team Kalkine Media

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CMC Markets has recorded a first-half profit, marking a successful turnaround — Image source: Shutterstock

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Highlights:

CMC Markets achieved a 45% year-on-year increase in net operating income, reaching £180 million in the first half of 2024.
Operating costs were reduced by approximately 7%, resulting in a profit before tax of £51 million, marking a significant turnaround from the previous year.
The company has initiated a partnership with fintech unicorn Revolut, contributing to an increase in active client trading.

Online trading platform CMC Markets PLC {LSE:CMCX} has reported a substantial increase in net operating income for the first half of 2024, growing by 45% year-on-year to £180 million. This performance is detailed in the company's latest trading update, which also revealed a decrease in operating costs by around 7%, leading to a profit before tax of £51 million. This result represents a significant recovery from the prior year's first half, during which the company faced a multimillion-pound loss due to reduced client activity and uncertain market conditions.

A notable development during this period was the launch of a partnership with financial technology unicorn Revolut. Although specific details regarding the partnership's impact on profitability were not disclosed, CMC Markets indicated that the number of clients actively trading on the platform has been steadily increasing.

In the pre-close trading update, CMC Markets attributed its strong performance to the successful execution of its ongoing diversification strategy, the continued expansion of its business-to-business (B2B) segment, and sustained client trading activity. The management team emphasized a commitment to growing profit margins while maintaining a disciplined approach to investments and improving operational efficiencies.

Full first-half results are scheduled to be released on November 21, providing further insights into the company’s performance and strategic direction. With its recent successes and initiatives, CMC Markets is positioning itself for continued growth in a competitive trading landscape.

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