CMC Markets lifts profit expectations amid high market volatility from Covid-19 pandemic panic
CMC Markets said its annual net operating income (NOI) will be towards the upper end of the current market consensus, as trading at the spread-better benefited from this year’s coronavirus-driven market volatility.
It’s the third time trading platform CMC Markets has lifted expectations for the period.
CFD net trading revenue more-than-doubled in the six months to 30 September to £200m, rising from £85m in 2019.
CMC, shares briefly dropped this week when the financial watchdog announced a ban on the sale of cryptocurrency derivatives.
This morning it said NOI would be towards the upper end of the £321m to £348.7m range estimated by analysts.
In the same period last year, it posted £252m in NOI.
The spread better now predicts a before-tax profit of £159.6m, ranging from £149.2m to as high as £175.3m.
Last month, it said the Covid-19 selloff in March helped bolster income by 93 per cent in the first quarter.
CMC Markets boss Peter Cruddas said in the latest trading update this morning:
“I am delighted with our record first half performance, which vindicates our strategy of diversification and continuing focus on high value clients.
“The performance is particularly pleasing given that the financial year began in the midst of the global COVID-19 pandemic.
“I am proud of the resilience and dedication shown by all of my colleagues at CMC.
“They continue to ensure that our clients are able to trade throughout these periods of high volume and volatility in global financial markets”.
CMC Markets shares popped at the open, but quickly went in reverse in London.
Shares are currently down 1.45 per cent.