CMC Markets reported its highest net operating income outside of the fiscal 2021 coronavirus-impacted period. These results come as the company positions itself as a technology-led financial services platform covering retail trading, investment and market infrastructure, rather than primarily as a CFD broker.
The London-listed company generated £418.7 million in total revenue for the year ending March 31, an increase of 16%. Net operating income rose 15% to £392.6 million, while statutory pre-tax profits rose 20% to £101.3 million. EBITDA was £117.8 million, compared to £103.4 million in the previous year.
Investing and B2B expand the revenue base
CMC is expanding its business on two fronts: through institutional distribution and a broader product mix. The company said enterprise and B2B platform partnerships now account for most of the group’s income.
CMC Connection Provides technology, liquidity, execution and post-trade support to financial institutions and fintech partners through APIs and white label arrangements.
Account openings through the API partnership with neobank have increased by 2,400% in less than a year, according to CMC. About 70% of the new accounts came from markets where the company had previously had no presence.
“Our B2B business model enables CMC to expand geographically,” said founder and CEO Lord Peter Cruddas. He added that the model reduced the need for significant marketing spend while offering faster returns and stronger margins than traditional market entry.
The product mix is also expanding. Net trading revenue remained the largest contributor at £289.7m, while investment income grew by 30% to £57.8m. Assets under management have reached a record £46.3 billion, boosted by the Australian stock broking business.
Common infrastructure connects CMC production lines
CMC offers CMC Markets, CMC Invest and CMC Connect as part of a cross-platform strategy. Its multi-asset technology provides shared infrastructure across retail, investment and institutional services.
Management describes the planned Super App as a customer interface and common architecture for trading, investing, payments and digital assets. CMC also highlighted reusable technology and application programming interface (API) connectivity as tools for product deployment and partnerships across markets.
Positioning depends on CMC platform technology as a service model But it places its retail, institutional and digital assets activities within a more unified structure.
Priorities for fiscal year 2027
Management priorities include bringing Westpac and ASB Bank partnerships online, expanding the neo-bank relationship and continuing the rollout of super-apps, multi-asset and digital assets.
CMC raised its guidance for net operating income for fiscal year 2027 In July to at least £550m, from the previous range of £460m to £480m.
This article was written by Tanya Chipkova at www.financemagnates.com.
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