CMC Markets Shares Tumble Following H1 Results

CMC Markets shares tumbled Wednesday after the company posted its fiscal 2023 interim results for the period ended September 30, 2022.

The financial services firm reported a net operating income of £153.5 million, up 21% year-over-year from £127 million. Meanwhile, trading net revenue was £128.4 million, rising 27%. Trading net revenue was £128.4 million, increasing 27% YoY, but investing net revenue declined 14% YoY to £20.8 million.

Pre-tax profit for the period rose just 1% to £36.6 million from £36 million during the previous period, while operating costs increased 28% to £106.3 million.

In a sign that the current market environment is weighing on investor/trader concerns, CMC reported that trading active clients declined by 7% to 50,199, while investing active clients fell 11% to 164,632. However, trading revenue per client increased 36% to £2,558.

CMC Markets declared an interim dividend of 3.50p per share.

“We saw an acceleration in activity across FX and commodities in addition to the normal activity across our index flow during a period of heightened focus on monetary policy action around the globe and a pickup in market volatility and trading volumes,” said Lord Cruddas, CEO of CMC Markets. 

“Against this backdrop, we are on track to deliver our three-year expansion initiatives aimed at driving higher revenues and diversifying our earnings.”

CMC Markets shares are down 9.9% at the time of writing.

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