CMC Markets Plc Trading Update (9143U)
03 April 2019 - 5:00PM
UK Regulatory
TIDMCMCX
RNS Number : 9143U
CMC Markets Plc
03 April 2019
3 April 2019
CMC Markets Plc
Trading Update
CMC Markets Plc (LSE:CMCX, "CMC" or the "Group"), a leading
global provider of online trading, today issues a trading update
for the financial year to 31 March 2019 ("FY 2019") ahead of its
Full Year Results that are expected to be released on 6 June
2019.
Overall performance in FY 2019 has been impacted by reduced
client trading activity following the implementation of the ESMA
intervention measures on 1 August 2018, compounded by challenging
market conditions during much of Q4. As a result, CMC expects to
report CFD and spread-bet revenue of c. GBP110 million for FY 2019,
37% lower than the prior year, and net operating income of c.
GBP131 million.
The Group remains focused on tight cost controls, and expects
operating costs for FY 2019 to be marginally lower year-on-year,
slightly below previous guidance.
Outlook
The impact of the new ESMA margin rules, which has resulted in
retail clients trading less, utilising more of their cash to fund
their margin requirements or needing to deposit more funds with CMC
to trade at previous levels, is showing signs of stabilising. Since
the introduction of the new rules, client money has remained
strong, and active client and new client numbers have remained
stable resulting in the Group having confidence in meeting the
consensus FY 2020 outlook. We believe that the new ESMA regulations
are good for this business and for the industry over the medium to
long term.
Our enlarged stockbroking business in Australia, which migrated
approximately 500,000 stockbroking client accounts as part of our
ANZ Bank white label transaction at the end of H1, and the
continued strength of our institutional business also provide
confidence in the Group's outlook.
Full Year Results
CMC expects to report its Full Year Results for FY 2019 on 6
June 2019. There will be a presentation at 9.30am on 6 June 2019
for institutional investors and analysts at CMC's offices at 133
Houndsditch, London, EC3A 7BX, United Kingdom. Those wishing to
attend should contact investor.relations@cmcmarkets.com.
Forward looking statements
This trading update may include statements that are forward
looking in nature. Forward looking statements involve known and
unknown risks, assumptions, uncertainties and other factors which
may cause the actual results, performance or achievements of the
Group to be materially different from any future results,
performance or achievements expressed or implied by such forward
looking statements. Except as required by the Listing Rules and
applicable law, the Group undertakes no obligation to update,
revise or change any forward looking statements to reflect events
or developments occurring after the date such statements are
published.
Enquiries
CMC Markets Plc +44 (0) 20 7170 8200
Grant Foley, Chief Operating and Financial Officer
Camarco +44 (0) 20 3757 4980
Geoffrey Pelham-Lane
Ed Gascoigne-Pees
Jennifer Renwick
Notes to editors
CMC Markets plc ("CMC"), whose shares are listed on the London
Stock Exchange under the ticker CMCX (LEI: 213800VB75KAZBFH5U07),
was established in 1989 and is now one of the world's leading
online financial trading businesses. The company serves retail and
institutional clients through regulated offices and branches in 14
countries, with a significant presence in the UK, Australia,
Germany and Singapore. CMC Markets offers an award-winning, online
and mobile trading platform, enabling clients to trade up to 10,000
financial instruments across shares, indices, foreign currencies,
commodities and treasuries through contracts for difference
("CFDs"), financial spread bets (in the UK and Ireland only) and,
in Australia, access stockbroking services. More information is
available at http://www.cmcmarkets.com/group/
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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