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UPDATE 1-Online trading platform CMC raises fiscal target again

Published 23/01/2020, 06:58 pm
© Reuters.  UPDATE 1-Online trading platform CMC raises fiscal target again
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(Adds background, details from statement, CEO quote)

Jan 23 (Reuters) - Online trading platform CMC Markets CMCX.L expects fiscal-year income to beat market expectations, lifting the forecast again as a focus on partnerships and professional traders pays off.

While CMC, along with rivals IG Group IGG.L and Plus500 PLUSP.L , had seen an erosion of its client base following a crackdown by European and British regulators on sale of certain high-risk products to amateur clients, recent updates have indicated a steadying trend as traders adjust to the new rules.

The company, listed on the FTSE small-cap index, said on Thursday net operating income came in above its expectations in the third quarter, which included the holiday season, as investors logged in to partake in the rally in the run-up to the New Year.

CMC said net operating income for the year would be ahead of the current market consensus of 184.1 million pounds ($241.98 million) to 189.3 million pounds. It reported net operating income of 130.8 million pounds in the last fiscal year.

A stockbroking partnership with Australia's ANZ Bank has also supported CMC's performance.

CMC in November posted a jump in its first-half net operating income and raised its full-year target, emphasising how clients were better adapting to regulatory changes. continue to have confidence in our ability to deliver further growth through platform partnerships and our strategy of attracting higher valued experienced clients," Chief Executive Officer Peter Cruddas said.

CMC's update comes in contrast to IG, which reported a drop in its profit due to stricter rules. = 0.7608 pounds)

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