Image Credit- cryptoren.com
CMC Markets has announced its full-year results for the year that ended on the 31st of March, 2019. The company has reported that its net in service income declined by 30% to £56.3 million, while the bottom line dropped by 90% to £6.3 million.
The regulatory changes across Europe driven by the ESMA have been singled out as the main factor behind the refuse in revenues and profits collapse. The unenthusiastic result was also exacerbated by the extremely low volatility period in the first quarter of 2019.
Volatility’s impact, however, was much less pronounced: revenues for the second half of the financial year came in at £60.2 million, compared to £70.6 million in the first half. The results are in line with a previously issued direction which signaled a significant decline in revenues from CFD trading.
The number of active clients has dropped by 10% to 53,308, also impacted by less trading opportunities when compared to the previous year. The company also introduced a sequence of measures to raise the level of suitability of its clients throughout the year.