CMC Markets H1 Pre-tax Profit Falls; Backs FY21 View

CMC Markets (CMCX), a British financial services company, on Wednesday posted a significant decline its pre-tax income for the first-half ended in September, as the revenues declined amidst a fall in sales from leveraged and non-leveraged net trading, and a rise in total costs. In addition, despite a fall in revenues, the company has reiterated its guidance for the current fiscal.

The London-headquartered firm posted a pre-tax profit of 36 million pounds for the two-quarter period ended on September 30, compared with 141.1 million pounds reported for the same period last year.

For the first six-month period of current fiscal, earnings per share of the financial firm moved down to 9.6 pence per share, from 38.1 pence per share, reported for the same six-month period of 2020.

The company also reported a fall in its net operating income by 45 percent to 126.7 million pounds for the first 26-week period of 2021, versus 230.9 million pounds, reported a year ago.

The total costs of the firm increased to 90.7 million pounds for the first six-month period of current fiscal, from 89.8 million pounds, posted for a year ago.

Meanwhile, the company decided to pay an interim cash dividend of 3.50 pence per share, per share on December 20, to shareholders of record on November 26.

Despite an ongoing recovery from Covid-19 related headwinds, the total revenue for the six-month period ended in September reported at 148.76 million pounds, compared with 255.62 million pounds, reported for the same two-quarter period of 2020.

For the first half of the current fiscal, amidst a decline in demand for the company’s products and services, CMC Markets posted its leveraged and non-leveraged net trading revenues at 101 million pounds and 24.2 million pounds, respectively, compared with 200.4 million pounds and 26.3 million pounds, reported for the same 180-day period of last fiscal.

For the fiscal year 2022, CMC Markets reiterated its prior guidance for net operating income of 250 million pounds -280 million pounds.

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