CMC says revenue doubled in year to end-March, bolstered by virus sell-off

Credit: REUTERS/HENRY NICHOLLS

Adds details on trading, background

April 3 (Reuters) - Online trading firm CMC Markets CMCX.L said on Friday its annual net trading revenue almost doubled in the year ended March 31, as the past month's selloff in financial markets due to the coronavirus boosted transaction volumes.

The company expects net trading revenue in contracts for difference to be about 214 million pounds ($264.91 million) for the year ended March 31, versus the 110.2 million pounds it reported a year earlier. (https://reut.rs/2UHtt5D)

CMC, whose online trading platforms allow individuals to make leveraged bets on financial markets, and its rivals IG IGG.L and Plus500 PLUSP.L have benefited from a surge in volatility in recent weeks as investors scramble to exit their positions ahead of an impending recession due to the economic damage from the coronavirus outbreak.

That enabled CMC to lift its forecast for the fourth time in six months in March.

The company said the strong performance in the final quarter helped offset a hit from regulatory restrictions on the sale of complex financial products to retail clients.

CMC also re-affirmed its dividend policy of paying a total annual dividend that makes up half of the year's profit after tax.

($1 = 0.8078 pounds)

(Reporting by Muvija M in Bengaluru; editing by Patrick Graham, Bernard Orr)

((muvija.m@tr.com; within UK +44 20 7542 1810, outside UK +91 80 6749 3638;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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