CMC Markets FY net operating income to exceed consensus

3rd Sep 2020 07:44

(Sharecast News) - Online trading platform CMC Markets said on Thursday that 2021 net operating income is set to exceed the upper end of current market consensus.
In an unscheduled update for the period from 1 July to the end of August, it said the "consistently strong" trading performance across the business has continued, with net operating income run rate for the two-month period only slightly below the first quarter of the year, while client income has continued to be above this time last year.

In addition, client income retention has remained "particularly strong", CMC said, and well in excess of the guidance of above 80%. The stockbroking business also continues to perform strongly.

As a result, net operating income for the year will be above consensus of between £282.4m and £300.6m.

"The higher revenue performance since the start of the financial year has been driven by existing clients trading more as well as the platform continuing to attract new clients," CMC said. "This has led to an increase in variable operating costs, predominantly driven by higher client onboarding costs and the more efficient acquisition of new clients."

At 0820 BST, the shares were up 7.7% at 336.00p.