British over-the-counter trading giant CMC Markets has published a report for the fiscal year ended March 31, 2020, stating that the company’s net revenue has grown substantially in the last quarter.
CMC Markets is a provider of technology solutions and institutional platforms for online trading. The report said that in all divisions of the group, revenue growth was recorded in fiscal 2020. In particular, the company noted that CFDs generated gross revenue of £241 million. This is 11.6% higher compared to £216 million in fiscal 2019.
The increase in customer revenue was due to good business dynamics throughout the year, the company said. The coronavirus pandemic further boosted market activity in the last quarter.
According to CMC Markets, this surge in activity in the first three months of 2020 offset the decline in customer trading activity as a result of measures taken by ESMA in August 2018.
CMC expects CFD revenue growth of 94.2%
In this regard, the company estimates that the net proceeds from trading contracts for difference (CFD) will be approximately 214 million pounds. This will almost double the net revenue from this segment for fiscal 2019, amounting to 110.2 million pounds.
Peter Cruddas, chief executive officer of the company, said that they were focused on strategic priorities and believed that the advantages of this area had begun to produce results and are reflected in financial indicators.
He also added that many new uncertainties were ahead of the company, including how governments, regulators and exchanges would react. Despite the uncertainty, he remained confident in the prospects for 2021, considering a lot of strategic growth initiatives.
Cruddas noted that the team was not dependent on a long period of high volatility in the markets, but on the invested platform, technical experience and a diversified offer that are the keys to help them achieve sustainable results not only now, but also in subsequent years.
Coronavirus is also a problem which disrupted the normal operation of markets around the world.