CMC Markets : increase of revenue and stock price of CFD broker
CMC Markets has announced Thursday an increase in revenue in the first quarter of fiscal year 2018. CMC Markets has completed its fiscal year 2017 31 march, the first quarter covers the months of April, may and June 2017.
Following the announcement of the results, the shares CMC Markets have increased 6.55% to 154,50 pence.
Revenues are rising thanks to an increase of 10 % of premium customers, which has helped to offset a 1% decrease in the number of traders CFDS and spread betting. This contraction of the traders means has been attributed to a change in the marketing strategy of CMC and an orientation towards premium customers.
The segment of traders prenium now represents nearly 10% of the overall customer base, CMC, and approximately 75% of the group’s revenues. The overall revenue per customer increased 9% compared to the same period last year.
According to a filing with the London stock Exchange, some of these successes come from the focus by CMC on cost discipline and prudent approach to the use of the capital which has resulted in operating costs unchanged from one year to the other.
The company also states that it is on track to finalize its partnership with ANZ (Australia and New Zealand Banking Group Limited). CMC has said they partnership will offer the group access to more than 500,000 customers of the exchange ANZ under the brand name ANZ Share Investing. The collaboration will enable customers of ANZ have access to the technology, customer service and execution of CMC Markets via a trading platform under the brand name ANZ.
On the regulatory front, the company noted : “The group continues to monitor changes in the regulatory landscape and will fully implement the changes proposed by the BaFin German before the deadline of August 10. Although there has yet been no conclusion to the consultation the FCA in the United Kingdom, the group there has been no change in the behavior of customers following the consultation and did not see any impact until the proposed amendments are implemented by ESMA “.