UK online trading house CMC Markets Plc (LON:CMCX) today reported its interim results for the half year ended 30 September 2024.
Net operating income for the six months to end-September 2024 was £177.4 million, up 45% year-on-year (H1 2024: £122.6 million), reflecting continued growth across the institutional segment and an increase in client trading activity.
H1 2025 trading net revenue was £131.3 million, up 50% year-on-year (H1 2024: £87.4 million) with strong performance across both our institutional and retail segments.
Investing net revenue was £19.9 million, up 19% year-on-year (H1 2024: £16.8 million), driven by a strong performance in international equities.
CMC Invest operations in the UK and Singapore continue to contribute a small proportion to net revenue reflecting the infancy of these operations. During the period, the Group has continued to invest in new features and will look to launch additional products and functionality in the near-term. This includes the launch of a FSCS-protected cash ISA product in the UK, which will have the aim of attracting both newer, and wider, range of customers to the platform.
The Group has also reached an agreement with ASB Bank in New Zealand to provide stockbroking services to their c1.5 million banking customers. This deal underlines the continued execution of CMC Markets’ strategy of growing its B2B services and be the partner of choice in both its trading and investing institutional offerings.
Interest income for the first half of fiscal year 2025 was £23.4 million (H1 2024: £16.1 million), up 46%, driven by the continued benefit of elevated global interest rates driving income from client cash balances and a strong performance by CMC Markets’ newly established Treasury Management and Capital Markets Division.
There was a significant increase in profitability year-on-year with profit before tax of £49.6 million, up from a prior year loss of £2.0 million and reflecting the combination of robust net operating income and disciplined cost management.
The company declared interim dividend of 3.10 pence per share (H1 2024: 1.00 pence) .
Lord Cruddas, Chief Executive Officer, commented:
“I am delighted that CMC has delivered another strong performance in the first half, with pleasing results across our business driven by our commitment to technological innovation. Flagship partnerships with Revolut and ASB Bank highlight our success in the B2B space, and our diversified product offering, including the expansion of cash equities and options offerings, and the upcoming launch of cash ISAs in the UK, is deepening our relationship with our clients and supporting strong top line growth.
As we announced in the previous financial year, CMC has reached the peak of the investment cycle and whilst we continue to invest in the business, we are taking a disciplined approach, and we remain laser focused on driving further efficiencies across our global operations as we continue to leverage our scale and technology. We remain confident in meeting the guidance set earlier this year, with net operating income expected to be in line with market consensus, supported by a strong pipeline of B2B partnerships and ongoing product expansion and diversification.
My thanks to our dedicated team and clients for their continued trust and support, and we look forward to building on the successes of H1 in the remainder of this year.”
