CMC Markets Plc H1 2019 Pre-Close Trading Update (7838B)
September 25 2018 - 1:01AM
UK Regulatory
TIDMCMCX
RNS Number : 7838B
CMC Markets Plc
25 September 2018
25 September 2018
CMC Markets Plc
H1 2019 Pre-Close Trading Update
CMC Markets Plc (LSE:CMCX, "CMC" or "the Group"), a leading
global provider of online trading, today issues a trading update
covering the period from 1 July 2018 to 25 September 2018 ("the
Period").
After a solid first quarter, the second quarter has been
impacted by a sustained period of low market volatility and range
bound markets towards the end of the traditional UK summer period,
in addition to an expected decrease in overall client trading
activity following regulatory change. As a result, net operating
income for 2019 is expected to be below previous guidance, with the
overall impact on profitability partially mitigated by tight cost
control. Following the summer period, the Group has seen some
improvement in client activity levels.
The implementation of the ESMA measures has reduced UK and
European retail client activity as expected. However, after just
two months it remains too early to draw any real conclusions as to
how clients will adapt to the new rules. Taken alongside the
aforementioned reduction in market volatility and range bound
markets during a period of the second quarter, CFD and spread bet
revenue for the full year is now expected to see a c. 20% reduction
year-on-year, below previous guidance for a 10% to 15% reduction
year-on-year.
The Group continues to deliver on its strategy, having
successfully completed the implementation of the white label
stockbroking partnership with ANZ Bank in Australia as expected in
the last week of the Period, which is expected to drive growth and
further diversify revenues. In July, 103 intermediaries were
migrated to CMC's Stockbroking platform and, in September, ANZ
Bank's retail stockbroking clients were successfully migrated. In
addition, to meet client demand, MT4, the foreign exchange
platform, will be launched in Q3 2019.
The Group also maintains a strong focus on operating costs.
Investments in strategic initiatives to drive future growth are
ongoing, however discretionary spend around staff and marketing
costs is now expected to be lower than previous guidance. As a
result, 2019 operating costs are now expected to be just slightly
higher year-on-year, partially mitigating the overall impact of Q2
2019 revenue performance on Group profitability for the full
year.
Throughout the Period, the Group remained focussed on increasing
the proportion of UK and European revenue generated by professional
clients (where the criteria are met). On a rolling 12-month view
over 40% of UK and European revenue is now generated by
professional clients, in line with previous guidance. Including
institutional business this increases to 50%.
H1 2019 Results
The results for the six months ending 30 September 2018 will be
announced on 22 November 2018.
There will be a presentation on 22 November 2018 at 9.30am for
institutional investors and analysts at CMC's offices at 133
Houndsditch, London, EC3A 7BX, United Kingdom. Those wishing to
attend should contact investor.relations@cmcmarkets.com.
Forward looking statements
This trading update may include statements that are forward
looking in nature. Forward looking statements involve known and
unknown risks, assumptions, uncertainties and other factors which
may cause the actual results, performance or achievements of the
Group to be materially different from any future results,
performance or achievements expressed or implied by such forward
looking statements. Except as required by the Listing Rules and
applicable law, the Group undertakes no obligation to update,
revise or change any forward looking statements to reflect events
or developments occurring after the date such statements are
published.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service ("RIS"), this
inside information is considered to be in the public domain.
Enquiries
CMC Markets Plc +44 (0) 20 7170 8200
Grant Foley, Chief Operating and Financial Officer
Camarco +44 (0) 20 3757 4980
Geoffrey Pelham-Lane
Ed Gascoigne-Pees
Jennifer Renwick
Notes to Editors
CMC Markets plc ("CMC"), whose shares are listed on the London
Stock Exchange under the ticker CMCX (LEI: 213800VB75KAZBFH5U07),
was established in 1989 and is now one of the world's leading
online financial trading businesses. The company serves retail and
institutional clients through regulated offices and branches in 14
countries, with a significant presence in the UK, Australia,
Germany and Singapore. CMC Markets offers an award-winning, online
and mobile trading platform, enabling clients to trade up to 10,000
financial instruments across shares, indices, foreign currencies,
commodities and treasuries through contracts for difference
("CFDs"), financial spread bets (in the UK and Ireland only) and,
in Australia, access stockbroking services. More information is
available at http://www.cmcmarkets.com/group/
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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