CMC Markets expects net operating income for FY2023 to hit £290M

CMC Markets has released its expected financial results for the fiscal year 2023, ending on March 31. The brokerage firm anticipates revenues for the period to range between £280M and £290M.

CMC Markets anticipates a net operating income of £290M

CMC Markets is an online trading platform whose headquarters are in London. The brokerage platform supports multiple financial products such as shares, spread betting, contracts for difference (CFDs), and foreign exchange (FX) for its global clientele base.

The final day for CMC Markets’ FY2023 is March 31, and the company now estimates that the net operating income during this period will hit between £280M and £290M. The broker also estimates that after deducting variable remuneration, the operating costs will range between £215M and £220 million.

The estimates shared by the UK-based broker come around two months after the firm reported that its net operating income was on track to meet market expectations for its current financial year.

However, CMC Markets has shared more insights on its operations in the first three months of 2023. The company noted that February and March were challenging as they recorded lower equity volumes. The company also had a high proportion of lower margin institutional trading activity.

CMC Markets also reported weakening net operating income towards the end of 2022. However, the operating income witnessed a notable recovery in January this year. CMC Markets noted that key metrics like the monthly active clients, client funds, and assets under administration were stable compared to the first six months of the financial year.

CMC has witnessed significant growth in some areas during the current financial year. During the first half of FY2023, between April and September 2022, the company reported a 21% year-over-year increase in the net operating income. The figure during the period came in at £153.5 million, which met the company’s expectations.

The net trading revenue that CMC Markets reported increased by 27% to reach £128.4 million during the first half of FY2023/. However, during the same period, the company reported a 14% decline in the net revenue gained from its investing services.

Expansion plans

CMC Markets also spoke about its expansion plans. The brokerage firm has said it is planning development upgrades across its investing and trading platforms. It noted that the process had already started.

The firm further said that it was committed to growing its institutional operations. In October last year, CMC Markets unveiled CMC Invest. The latter is a stock trading platform that targets investors based in the UK.

CMC Invest is also looking to expand its operations in Singapore after obtaining an in-principle license to grow its operations there. CMC added that the platform would be launched in Singapore in the coming months. The online trading platform also said it was committed to growing its net income by more than 30% in the next three years, depending on its performance in 2022.