2016 CMC markets revenue down by 17%

2016 CMC markets revenue over the period of April 1 until September 30 shows a 17 percent decrease. What is CMC Markets’ outlook for the rest of the Fiscal year?

23 November, AtoZForex – Online trading firm CMC Markets Plc, which is based in London, has reported its results for the first half of 2017 fiscal year. CMC Markets has their fiscal year ending on March 31 so the first half covers from April 1 until September 30, 2016. Hence, the 2016 CMC markets revenue has decreased by 17 percent according to the report.

2016 CMC markets revenue slowdown

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Their report showed a noticeable slowdown in business, despite including a very active trading period during June’s Brexit vote. CMC has already issued a warning earlier in September that they will experience a slow Q2. Back then, this news sent CMC shares down approximately 12 percent.

The report included CMC’s revenues for 6 months which is £75.5 million. That’s considered 17 percent below the previous six months from October 2015 until March 2016. The report also showed a decrease in CMC’s profit before tax, which is 30 percent lower than the previous six months decreasing from £26.9 million to £18.8 million.

What’s CMC’s outlook for the rest of the Fiscal year? 

CMC remarked in their outlook for the rest of the year, that it has seen no more easing of clients trading levels at the start of the second half of 2017 fiscal year. However, it does believe that the second half of 2017 fiscal year performance will improve. Additionally, if these unfavorable conditions persist and clients trading levels do not improve. Then the net operating income for 2017 fiscal year would be more likely be lower than of 2016 fiscal year.

Peter Cruddas, CMC Markets CEO and controlling shareholder stated that their first-half net operating income has been lowered because of clients’ decreased trading activity. He added that they continue to make significant progress in strategies to deliver against their five pillars of growth. He added,

“We are growing our active client base through retail and institutional channels". He added,  "rolling out new products and platform enhancements and looking at opportunities to develop our international footprint.”

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