CMC Markets Shares Rally as H1 Profits Jump

CMC Markets (LON: CMCX) shares surged over 5% in early Wednesday trading after the online financial trading platform announced a significant increase in first-half profits.

In a pre-close trading update, the company revealed that net operating income for the six months ended 30 September 2024 is expected to be approximately £180 million, up 45% from the previous year.

Operating costs have also declined around 7% to £113 million from £122 million, leading to an estimated profit before tax of £51 million, representing a significant rise from the previous year, which saw the company report a loss before tax of £2 million.

The strong performance is attributed to the success of CMC Markets' diversification strategy, growth in the B2B segment, and sustained levels of client trading activity.

“Management remains focused on growing profit margins and taking a disciplined and balanced approach to investment whilst driving efficiencies through the business,” said CMC Markets.

The company has also been focused on expanding its product offerings and driving efficiencies to improve profitability.

“From an operational standpoint, the Group has continued to enhance its service offering across platforms with the expansion of cash equities and options products, as well as the upcoming launch of cash ISAs in the UK underpinned by our treasury management division and proprietary technology,” added the company.

CMC also pointed to the onboarding of Revolut clients, which has commenced following a soft launch. They said the number of clients live and actively trading is increasing steadily.

CMC Markets' interim results are due to be released on 21 November 2024.