Today, CMC Markets (LON: CMCX) announced it expected its net operating income for fiscal year 2024 to top its previous forecast of £290 million to £310 million. The broker, which offers online financial trading services such as foreign exchange and contracts for difference, attributed its strong performance to increased activity in global markets.
CMC Ups Income Projections
After a robust third-quarter performance, the firm adjusted its income projections upwards by £40 million in January and now anticipates beating this new target.
The firm noted that the success achieved in the third quarter propelled sustained momentum into the fourth quarter. Their institutional and B2B segments remain strong, benefiting from our long-term investment in these areas. With several B2B partnerships close to finalization, their pipeline looks promising.
Company Makes a Comeback
CMC Markets experienced a 20% decrease in net operating revenue year-on-year to £122.6 million in the first half of the current fiscal year. This resulted in a £2 million pre-tax loss and 0.8 pence of negative basic earnings per share.
After a challenging first half, the broker took decisive action by announcing a workforce reduction of 17% as part of its “cost reduction and efficiency plans.”
The latest update from the company suggests it expects to keep operating costs around the £240 million mark, excluding variable compensation and one-off items.
Additionally, CMC has made strides globally by launching its stock investment platform in Singapore, which is also accessible to users in the UK and Australia. With the cost reduction and efficiency measures initiated in Feb 2024, the company is exploring other ways of cutting costs globally and boosting profit margins.
