Strong net operating income, up 45%; Profit before tax £30 million Technology partnerships further diversifying revenue streams
|For the half year ended|
|£ million (unless otherwise stated)||30 September 2019||30 September 2018||Change|
|Net operating income||102.3||70.6||45%|
|Profit before tax (£ million)||30.1||7.2||318%|
|Basic earnings per share (pence)||9.5||2.7||252%|
|Dividend per share (pence)||2.85||1.35||111%|
|CFD net client income (£ million)||96.0||97.6||(2%)|
|CFD net revenue (£ million)||85.1||63.1||35%|
|CFD active clients (numbers)||41,603||44,697||(7%)|
|CFD revenue per active client (£)||2,047||1,413||45%|
|Stockbroking net revenue (£ million)||14.5||5.5||164%|
Net operating income represents total revenue net of introducing partners commissions and betting levies
CFD net client income represents spreads, financing and commissions charged to clients (client transaction costs) net of rebates
CFD net revenue represents total trading revenue generated from CFD clients net of introducing partners commissions and betting levies
CFD active clients represent those individual clients who have traded with or held a CFD or spread bet position with CMC Markets on at least one occasion during the six month period
CFD revenue per active client represents total trading revenue from CFD and spread bet active clients after deducting rebates and levies
Financial and operating highlights
Good strategic progress delivered
Peter Cruddas, Chief Executive Officer commented:
“I am pleased with the strong first half performance. This time last year we had the uncertainty of regulatory change overhanging the sector with the client response to the changes in minimum margin levels unclear. A year on, we are seeing clients adapt, maintaining their interest in the products and the trading platforms we offer.
It is clear that we are becoming more than a CFD business with income also being derived from technology partnerships, such as the ANZ deal. This is an exciting area of the business which will continue to grow through further planned partnerships and ongoing investment to improve the offering.
From a regulatory perspective, we welcome the consultation by the Australian Securities and Investments Commission (“ASIC”) in Australia. The Group is supportive of regulatory change, which ensures that all providers operate to the highest standards, safeguarding fair client outcomes and we believe that a stronger and better industry will emerge from these changes. The exact timing of the ASIC changes is not known, however, the proposed changes are similar to those introduced by the European Securities and Markets Authority (“ESMA”) in 2018. Once any changes are implemented in Australia, regulatory uncertainty will finally be lifted from all of our material regions.
I remain positive on the outlook for the remainder of the financial year and am excited about the future opportunities that will open up as we continue to focus on the development of our technology and platform offerings.”
Analyst and Investor Presentation
A presentation will be held for equity analysts and investors today at 9.30 a.m. (BST).
A live audio webcast of the presentation will be available via the following link:
Alternatively, you can dial into the presentation:
United Kingdom: 020 3059 5869
All other locations: + 44 20 3059 5869
Please quote “CMC Markets plc H1 2020 Results conference” when prompted.
Forthcoming announcement dates
|23 January 2020||Q3 2020 trading update|
|3 April 2020||FY 2020 pre-close update|
Forward looking statements
This trading update may include statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Group undertakes no obligation to update, revise or change any forward-looking statements to reflect events or developments occurring after the date such statements are published.
CMC Markets Plc [email protected]
Euan Marshall, Chief Financial Officer
Geoffrey Pelham-Lane/Ed Gascoigne-Pees/Jennifer Renwick Tel: 020 3757 4980