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(Alliance News) - CMC Markets PLC on Thursday said it expects full-year net operating income to be towards the upper end of guidance following a strong performance in its first half.
The FTSE 250-listed online trading firm said its performance in its first half ended September 30 was driven by a focus on retaining and acquiring high value clients, diversification through its institutional business-to-business and stock broking business and elevated volatility as the Covid-19 pandemic increased client trading activity.
This resulted in contracts-for-difference trading revenue of around GBP200 million, up from GBP85 million the year prior, CMC explained. Stockbroking net revenue is expected to increase to around GBP26 million from GBP14 million.
Operating costs will be around GBP80 million, up from GBP65 million, primarily as a result of the the company's investment in technology leading to higher personnel costs as well as an increase in marketing costs to attract new high-value clients.
"Following the strong performance in the first half, the board is confident that net operating income will be towards the upper end of the current range of consensus, while operating costs are anticipated to be moderately above consensus," CMC Markets stated.
In September, CMC said full year net operating income consensus is around GBP287.6 million, ranging between GBP282.4 million to GBP300.6 million.
The stock was trading 3.2% lower at 352.86 pence each on Thursday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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