CMC Markets (CMCX) expects net operating income to exceed £170m in its year to March 2020, as the spread-betting firm eyes a possible rebound after regulatory changes caused its revenues and profits to crash last year.
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The estimate was unveiled in a first-half trading update, which suggested income from the contracts-for-difference (CFD) business would be “only slightly down” on the first half of FY2019, when the new rules were introduced.
Active client numbers fell, and operating costs before remuneration are expected to rise, though CMC’s higher retention of a greater proportion of client income means CFD “net trading revenue” should hit £85m for the period, up from £63m in the first half of FY2019.
