Brokerage group CMC Markets posted a trading update for the final quarter of 2024 on Thursday morning.
The London-listed firm’s financial year ends at the close of March, meaning the update was describing the company’s third quarter.
The brief statement noted that operating income is in line with prior guidance given to the market. Net operating income, the term CMC uses for revenues, for the year is set to come in at £333m. This would be close to flat year-on-year but still represent – aside from 2020’s corona-induced record high – the broker’s highest ever level of revenues.
Despite this, shares in the group have fallen almost 14% at the time of publication. Quite why that’s the case is unclear.
CMC Markets shares rose massively after pandemic volatility led to record revenue numbers. However, after that ended and revenues came down again, shares in the group declined by more than 80% from their 2021 peak of £5.36.
That started to change at the end of 2023, probably because of how cheap the valuation was and as we saw more spikes in volatility.
What is possibly happening today is that investors were hoping for more from the deal the company made with Revolut and that the firm would also see better revenues from the market volatility we saw in the final quarter of last year.