CMC Markets to Reveal Progress of Revolut Partnership in Upcoming Update

3 min read | October 03, 2024 04:25 PM BST | By Team Kalkine Media

Highlights:

  • CMC Markets will provide updates on its partnership with Revolut in its 9 October trading update.
  • Investors will focus on how CMC’s services, including bond trading, are performing within the Revolut app.
  • CMC targets net operating income between £320m and £360m for the year, building on £332.8m from 2024.

CMC Markets PLC (LSE:CMCX) is set to provide key insights into its partnership with fintech giant Revolut during its trading update scheduled for 9 October. The partnership, announced in June, marks a strategic collaboration in which CMC Markets will offer a range of trading services on Revolut’s platform. This includes tools that allow Revolut’s users to trade European corporate and government bonds. Investors are particularly eager to learn how this integration has been performing since the onboarding of clients began in July.

The partnership with Revolut is an essential part of CMC’s strategy to expand its footprint in the business-to-business (B2B) sector. CMC has highlighted this collaboration as having a strong "pipeline of potential opportunities," which aligns with its broader goal of boosting profit margins. As the October update approaches, analysts and investors will be looking for indications of whether this partnership is meeting expectations, contributing to revenue growth, and providing the anticipated competitive edge in the fintech space.

The update will cover the company’s first-half trading results, ahead of a more comprehensive set of financial results in November. CMC’s guidance for the full year, as previously outlined, expects net operating income to range between £320 million and £360 million. This is an increase from the £332.8 million recorded in the financial year 2024. Investors will be closely watching the update to assess whether CMC is on track to meet these targets, particularly in light of its efforts to diversify revenue streams and strengthen its position in the fintech and financial trading markets.

CMC’s collaboration with Revolut also comes at a time when the company is focusing on improving its offerings and growing its presence in the business-to-consumer (B2C) market as well. By leveraging the strengths of both B2B and B2C, CMC aims to drive growth and achieve greater profitability in an increasingly competitive financial landscape.

As CMC Markets prepares to reveal its update, the performance of the Revolut partnership and its contribution to the company’s long-term goals will be a focal point. Investors will be keen to see whether CMC’s ambitious plans for expansion and innovation are translating into tangible financial success.


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