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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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CMC Markets on wrong side of trade as revenues slide

Revenue per client fell 22% to £1,413 while the number of active clients dropped 4%

Interim profits tumbled at spread better CMC Markets Plc (LON:CMCX) as low volatility combined with tighter regulation.

Nearly all key metrics fell in the six months to September in what was a very difficult second quarter said Peter Cruddas, chief executive.

READ: CMC Markets blames new regulations and low market volatility for latest profit warning

Net operating income dropped 21% to £70.6mlm, while pre-tax profits fell 76% to £7.2mln as markets steadied over the summer.

Revenue per client fell 22% to £1,413 while the number of active clients dropped 4%.

Cruddas added: “Volatility was low, and unusually the majority of asset classes traded in tight ranges.

“This was further compounded by the impact of European regulatory change that came into force on 1 August.”

Market activity and daily ranges have improved in the second half and for the full year, the company is still predicting a 20% year-on-year reduction in CFD and Spreadbet net revenue, which is in line with earlier guidance.

Second half operating expenses will be marginally higher than the first half.

Shares fell 4% to 114p.

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