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22 Feb 2019 | 14:46

CMC Markets downgrades revenue guidance after tough January and February

Broking group CMC Markets downgraded its revenue guidance after trading conditions deteriorated in January and February.

The company said it now expected annual contracts-for-difference and spreadbet revenue to be between around 25% and 35% lower on-year, compared to previous guidance for a 20% reduction.

'Following an encouraging start to the fourth quarter, market conditions have been challenging from a revenue perspective in January and February 2019,' the company said.

CMC Markets said there was no change to its outlook for 2020 financial year net operating income, which was expected to be in line with current market expectations.

'The group's confidence in the revenue outlook comes from its increasingly diverse revenue portfolio, with CMC's growing stockbroking and institutional businesses helping to complement the group's core CFD spreadbet activities,' the company said.

'CMC will continue to take a proactive approach in adapting its business model, managing client accounts and the cost base to capture the medium-term structural opportunities.'

Chief executive Peter Cruddas said the company was in a period of adjustment following the introduction of new regulations.

'While it has been a challenging year for the group, not helped by difficult trading conditions, we remain confident as we improve our understanding of how clients are trading under the new regulations.'

'I continue to believe that the industry will benefit from regulatory change over the medium-term and that CMC is strongly positioned to do so across its business due to its investment in leading technology and strategic diversification through its stockbroking and institutional businesses.' At 2:46pm: (LON:CMCX) CMC Markets Plc share price was -1.3p at 115.3p

Story provided by StockMarketWire.com
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