The publicly-traded UK brokerage CMC Markets Plc (LON:CMCX) has announced its end of year FY2020 financial results and indicated a healthy start to FY2021. The broker reported a dramatic increase in full-year net operating revenues, which totalled £252 million. This represents almost a doubling of the net revenues of £121.2 million achieved in 2019.
The broker indicated that its stellar revenue performance was a result of improvements in revenue capture with changes to risk management strategies coupled with trader activity as a result of Covid-19 related market volatility and customer activity in the last quarter of fiscal Q4 2020. CMC Markets also noted a boom in its stockbroking business, a White Label relationship with ANZ Bank.
Regarding CFDs, the broker reported active customer accounts at 57,202, which is a roughly 7% increase year over year. The broker attributes most of this growth to the interest in trading surrounding trading opportunities in the markets, which presented themselves after the spread of Covid-19 around the world. In addition, CFD trading related revenues remain elevated in the first fiscal quarter of 2021, the broker reported, at a rate of almost double as compared to the same time period last year.