Cmc Markets Plc · LSE:CMCX

Cmc Markets — H1 2025 Earnings Presentation

23 slides from Cmc Markets's earnings presentation, Nov 21, 2024

  1. Slide 1: Results Presentation

    CMC MARKETS PLC 133 HOUNDSDITCH, +44 (0)20 7170 8200 CMCMARKETS.COM/GROUP LONDON, EC3A 7BX Results Presentation Half year ended 30 September 2024 21 November 2024

  2. Slide 2: Today's Presenters

    Introduction Today’s Presenters Lord Peter Cruddas Albert Soleiman David Fineberg Chief Executive Chief Financial Deputy Chief Officer Officer Executive Officer

  3. Slide 3: Key Highlights

    Key Highlights Operational delivery driving revenue, margin and profit growth ✓ Strong financial performance with net operating income up 45%, driven by growth in our institutional business and increased trading across key assets ✓ Improved profitability with disciplined cost management boosting mar

  4. Slide 4: Financial update

    Financial update Albert Soleiman Chief Financial Officer

  5. Slide 5: Group Financial Metrics

    Group Financial Metrics Strong financial performance demonstrating early success of diversification strategy Net operating income¹ (£m) Net revenue mix 14% 9% 13% 86% 91% 87% FY23 FY24 H125 FY23 FY24 H125 Trading net revenue Investing net revenue Profit before tax (£m) & profit before tax margin2 (%

  6. Slide 6: Financial Metrics: Trading

    Financial Metrics: Trading Significant increase in net revenue, with strong performance across both B2C and B2B segments Trading net revenue (£m) Proportionate B2C/B2B split of turnover2 30% 29% 31% 35% 38% FY23 FY24 H125 Revenue per active client1 (£) 70% 71% 69% 65% 62% 3,730 2,984 2,558 2,177 1,8

  7. Slide 7: Financial Metrics: Investing

    Financial Metrics: Investing Stronger investing performance supported by increase in AuA Investing net revenue (£m) Assets under administration (£bn) FY23 FY24 H125 41.1 Investing net revenue: B2C and B2B mix1 40.5 40.5 39.6 37.7 FY23 FY24 H125 FY23 FY24 H125 B2B B2C H1 H2 H1 2025 Results Presentati

  8. Slide 8: Income Statement

    Income Statement Net operating income Group (£m) H1 2025 H1 2024 YoY % • Net operating income of £177.4 million, up 45% (H1 2024: £122.6 million) and Trading net revenue 131.3 87.4 50% driven by: Investing net revenue 19.9 16.8 19% • Strong performance in our trading business, with net revenue up 50

  9. Slide 9: Liquidity & Regulatory Capital

    Liquidity & Regulatory Capital Regulatory capital Net available liquidity Group (£m) Sep-24 Mar-24 Group (£m) Sep-24 Mar-24 Capital resources before regulatory adjustments1 412.3 383.1 Own funds 332.1 325.8 Less: regulatory adjustments (75.0) (43.0) Non-segregated client and partner funds 110.9 119.

  10. Slide 10: Financial Outlook

    Financial Outlook Net operating income: • Remain confident in delivering on guidance set out at the beginning of the year, with net operating income forecast to be in line with external market expectations1 • Remain focused on profit margins by leveraging our size and scale, driving further efficien

  11. Slide 11: Strategic & Operational Update

    Strategic & Operational Update David Fineberg, Deputy Chief Executive Officer

  12. Slide 12: Delivering Growth Through Diversification

    Delivering Growth Through Diversification Diversification strategy supporting strong financial performance and unlocking future business opportunities Product development + Market-leading technology + New geographies & markets • Asset class expansion key to • Investment in our global technology incr

  13. Slide 13: Continuing to Target Growth in the B2B Segment

    Continuing to Target Growth in the B2B Segment Driving our diversification through new partnerships and product launches Revolut Partnership FX Spot Product Offering Average daily volume increased significantly since products introduction in January 2023 • CMC is a non-bank liquidity provider in siz

  14. Slide 14: Wrap Up

    Wrap Up Lord Peter Cruddas Chief Executive Officer

  15. Slide 15: Strategic Outlook

    Strategic Outlook Focused on driving growth through our diversification strategy Institutional first approach ✓ High-profile deals signed with Revolut and ASB Bank with strong pipeline of opportunities ✓ Continue to focus on profit margins, driving operational efficiencies and leveraging Operational

  16. Slide 16: Q&A

    Q&A Cnc

  17. Slide 17: Appendices

    Appendices Cnc

  18. Slide 18: Appendix 1: Income Statement

    Appendix 1: Income Statement Group (£m) H1 2025 H1 2024 Change % Total revenue 188.2 135.8 39% Introducing partner commissions and betting levies (10.9) (13.2) (18%) Net operating income 177.4 122.6 45% Operating expenses (123.7) (118.3) 5% Impairment of intangible assets (0.2) (5.3) (96%) Operating

  19. Slide 19: Appendix 2: Operating Expenses Breakdown

    Appendix 2: Operating Expenses Breakdown Group (£m) H1 2025 H1 2024 Change % Net staff costs 59.0 53.2 11% IT costs 22.4 19.2 17% Sales and marketing 15.0 16.7 (10%) Premises 2.5 3.4 (26%) Legal and Professional fees 7.0 6.6 6% Regulatory fees 2.5 2.3 9% Depreciation and amortisation 6.8 7.6 (11%) B

  20. Slide 20: Appendix 3: Balance Sheet

    Appendix 3: Balance Sheet Group (£m) H1 2025 FY 2024 Change % Fixed assets 54.5 57.5 (5%) Trade and other receivables 182.2 164.8 11% Financial investments 109.0 50.9 >100% Amounts due from brokers 202.7 228.9 (11%) Cash and cash equivalents 174.1 160.3 9% Other assets 44.6 54.5 (18%) Total assets 7

  21. Slide 21: Appendix 4: Own Funds Flow Statement

    Appendix 4: Own Funds Flow Statement Group (£m) H1 2025 H1 2024 Operating activities Profit / (loss) before tax 51.9 (2.0) Adjustments for: Depreciation and amortisation 7.1 12.9 Other non-cash adjustments 3.1 (0.5) Tax paid (12.5) (2.0) Own funds generated from operating activities 49.6 8.4 Movemen

  22. Slide 22: Disclaimer

    Disclaimer Certain statements in this presentation constitute or may constitute forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding the Company’s future expectations, operations, financial performanc

  23. Slide 23: Cnc

    Cnc

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