The trading platform operator issued a trading update covering the period since July 1 in which it said the consistently strong performance across the business had continued, with the net income operating income run rate running only slightly below the preceding three months – the first quarter of CMC’s fiscal year – when volatility was running high as a result of uncertainty caused by the spread of the coronavirus (COVID-19).
Client income has continued to exceed the corresponding period of 2019 while client income retention has remained well above the guidance of more than 80%. The stockbroking business also continues to perform strongly.
The higher revenue performance since the start of the financial year has been driven by existing clients trading more as well as the platform continuing to attract new clients. This has led to an increase in variable operating costs, predominantly driven by higher client onboarding costs and the more efficient acquisition of new clients, CMC said.
Last night it was confirmed that CMC Markets shares will be returning to the FTSE 250 index later this month following the latest quarterly reshuffle.