CMC Markets are once again looking to close the year with a strong performance. According to their update for the third quarter of 2020.
High client income retention for October and November contributed positively to the business.
The company retained over 80% of client income during the quarter. However, it was less than what they achieved in the first half of the year.
The overall business performed well, and the higher number of active clients led to strong client activity and revenue. However, the metrics did not perform better than the previous financial year.
In the first half of FY 2020, CMC Markets’ revenue from CFDs rose 135% to about £200 million.
CMC Markets revised its full-year income expectations and getting more bullish.
The company upped its expected net operating income to £376.6 million, ranging from £370.2 million to £387.5 million. The pre-tax profits could come to £197.2 million, ranging from £191.3 million to £206.3 million.
Peter Cruddas, CMC Chief, said he was very excited about the opportunities to continue to grow and diversify the business on the back of their technology.
Peter has consistently talked about investing in technology and people in the past. He said that he would continue to be a priority as they sought to maintain and expand their competitive advantage.
Further, Peter stressed the importance of technology expertise in their product expansion.
CMC Market targets diversifying its revenue stream with other upcoming projects; however, they did not provide the details.
According to Peter, continued investment in risk infrastructure is reducing latency, pricing, and executes efficiencies.
The investment allows them to capture a higher percentage of their premium client income – especially during volatile market conditions.