CMC Markets announced a robust performance in the first quarter before the bell. It projects substantial full-year yields for the year 2021.
For the six months ending September 30, the online trading platform generated a £ 200 million revenue from contracts for differences or CFDs. This is up from the £80 generated in the same period last year.
The revenue translates to a 135% year-on-year surge.
Adding to better-than-expected take homes from CFDs, the firm is also expecting a £21 million net stockbroking revenue for H1 2021. This is an £8 million increase from last year’s figures.
According to representatives, the forward thrust is primarily driven by the rebranding, white-label partnership with ANZ Bank.
Behind the sustained growth is the company’s efforts towards improving its platform and overall operations.
CMC Markets forecasts an increased operating cost of £80 million from £65 million last year for the same period. Investments in technology and marketing are the biggest pullers of increased spending.
Based on the current figures, the firm is optimistic that they will perform better next year, focusing mainly on the acquisition of business-to-business and institutional clients.
2021 Will Be A Good Year
The CMC’s chief executive acknowledged the effectiveness of the firm’s novel strategy of service diversification. For the period, CMC admitted to having focused on high-value clients and is successful in the trial.
This came at a time of great uncertainty in financial markets due to the continued uncertainty given by the Covid-19.
While some other companies floated along with the health crisis, some others thrived, including CMC Markets.
The group highlighted the benefits it gained from the market volatility ignited by the coronavirus, thus increasing client activity and traffic significantly.
The LSE-listed company expects a net income ranging from £321 million to £347 million for the next year in the full-year lead.
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