CMC Markets sees 2023 earnings in line with market forecasts

CMC Markets PLC (LSE:CMCX) shares closed down 2.16 percent in Wednesday’s trading after the firm’s trading update for the fiscal year 2023 revealed that its net operating income was “tracking in line with market expectations.”

The listed brokerage firm said its net operating income was weaker towards the end of the calendar year, but it recovered strongly in January. Monthly active clients, client money and assets under administration in CMC’s investing and trading businesses remain stable versus H1 2023.

The firm’s notable updates included a regulatory grant in-principle for the launch of CMC Singapore Invest, marking another milestone in CMC’s geographical expansion. CMC says the move comes as the firm continues to diversify and expand its geographic footprint through its technology, leveraged institutional offering, and non-leveraged platforms.

The company also highlighted the development upgrades across both its investing and trading platforms continue. Specifically, its UK non-leveraged platform for its British staff, CMC Invest, expanded its offering with the recent addition of ETFs, ISAs as well as responsible ESG screening functions. CMC noted that the platform will offer both B2C and B2B potential to the wider market.

Lord Cruddas, Chief Executive Officer, commented: “2023 is set to be an exciting year for CMC as we continue our growth strategy. Our core initiatives of product expansion, new trading analytics, new pricing functions and enhanced onboarding initiatives remain on track across both our investing and trading platforms. Expansion of CMC Invest continues, with UK marketing spend accelerating over coming months coinciding with delivery of a steady stream of new products and functionality. I look forward to updating the market further at our full year results later this year.”

CMC Markets kept its guidance for the current year unchanged, and declared an interim dividend of 3.50p per share. The online trading and investment broker confirmed its plans to grow net operating income by 30% over three years based on the 2022 results and underlying conditions.

The listed brokerage firm announced its FY H1 2023 net operating income at £153 million, up 21 percent from £127 million a year earlier and also hitting a record performance outside the Covid-19 pandemic.

CMC said it achieved a gross leveraged client income of £155, representing a 22 percent year-on-year decline compared to its £127 million intake in 2021.