CMC Markets Sees Net Operating Income Surge by 45% YoY in H1 FY25

CMC Markets, a leading Forex and CFD trading platform, has unveiled its interim results for the half year ended 30 September 2024 (H1 FY25), reporting a net operating income of £177.4 million, marking a 45% increase from £122.6 million in H1 2024, attributed to continued growth in its institutional segment and heightened client trading activity.

Trading net revenue for H1 FY25 surged by 50% year-on-year (YoY) to £131.3 million, up from £87.4 million, driven by strong performances across both institutional and retail segments. Investing net revenue reached £19.9 million, a 19% rise from £16.8 million in H1 2024, spurred by robust international equities performance. Interest income also saw a notable increase, rising 46% YoY to £23.4 million from £16.1 million.

In its efforts to enhance profit margins, CMC Markets focused on cost efficiency, leading to a 9% reduction in operating costs (excluding variable remuneration) to £111.4 million, down from £121.9 million in H1 2024.

This combination of robust net operating income and disciplined cost management resulted in a substantial YoY rise in profitability, with the company reporting a profit before tax of £49.6 million, a significant turnaround from the previous year's loss of £2.0 million.

Looking ahead, CMC Markets emphasized its pragmatic investment approach to expand profit margins while continually exploring new growth opportunities. Lord Cruddas, Chief Executive Officer, stated, "We remain confident in meeting the guidance set earlier this year, with net operating income expected to be in line with market consensus, supported by a strong pipeline of B2B partnerships and ongoing product expansion and diversification."