CMC reports Net operating income down 4% 

For the six months ended £ million (unless otherwise stated)	30 September 2016	30 September 2015	Change
Net operating income	75.5	78.9	(4%)
Profit before tax	18.8	26.5	(29%)
Earnings per share (pence)	5.1	7.2	(29%)
Number of trades (million)	30.4	33.5	(9%)
Value of trades (£ billion)	911	1,112	(18%)
Active clients (numbers)	47,623	44,017	8%
Client assets	283.3	214.5	32%
Revenue per active client (£)	1,488	1,707	(13%)

Notes:
Net operating income represents total revenue after rebates payable to clients and introducing partners, and betting levies
Active clients represents those individual clients who have traded with or held a CFD or spread bet positions with CMC Markets on at least one occasion during the six month period
Client assets represent total amounts due to segregated clients at the period end
Revenue per active client represents total trading revenue from CFD and spread bet active clients after deducting rebates and levies

Highlights

• Net operating income down 4% to £75.5 million (H1 FY16: £78.9 million) with revenue per active client down 13% to £1,488
• Continued growth in active clients, up 8% to 47,623 during H1 FY17
• Client assets up 32% to £283.3 million (H1 FY16: £214.5 million)
• Underlying operating costs up 9% to £53.6 million (H1 FY16: £49.1 million), reflecting investment in headcount and marketing to support strategic growth initiatives
• Underlying profit before tax down 28% to £18.8 million (H1 FY16: £26.2 million)
• Regulatory total capital ratio of 30% with own funds of £165.9 million
• Interim dividend of 2.98 pence (33% of FY16 full year ordinary dividend)

Strategic progress

• Established markets: Growing market share with active clients up 3% although value of client trades down 15%
• Geographic expansion: New Poland office opened in October 2015 performing in line with expectations, building a platform for future growth across Eastern Europe. France office, value of client trades up 37%
• Digital initiatives: New opened accounts up 15% driven by improvement in online advertising, websites and application forms which are optimised for mobile devices
• New products: Binaries released in April 2016 and Knockouts launched in Germany in October 2016 – all designed, built and delivered in-house. Binaries and Countdown revenue £4.1 million, 26% higher than H2 FY16
• Institutional offering: New API connectivity delivered, along with Next Generation white and grey label, resulting in an increase in the value of client trades of 34%

Peter Cruddas, Chief Executive Officer, commented:
“Our first half net operating income reduced due to lower client trading activity, as experienced by the wider market and highlighted at our AGM trading update on 7 September 2016. However, we continue to make significant strategic progress, delivering against our five pillars of growth. We are growing our active client base through retail and institutional channels, rolling out new products and platform enhancements and looking at opportunities to develop our international footprint.”

Source: CMC Markets

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