Full Year 2025 CMC Markets PLC Earnings Call Transcript
Key Points
- CMC Markets PLC (STU:T8Q) introduced a third vertical focused on DeFi and Web 3.0, enhancing their existing two-vertical model and positioning the company at the forefront of financial innovation.
- The company reported a robust net operating income of GBP340 million, marking a 2% increase, driven by growth in the PTAS and B2B segments.
- Operating expenses were reduced by 2%, demonstrating effective cost control and contributing to a 12% increase in EBITDA.
- CMC Markets PLC (STU:T8Q) proposed a 37% increase in dividend per share, reflecting strong financial performance and commitment to shareholder returns.
- The acquisition of StrikeX enhances CMC Markets PLC (STU:T8Q)'s capabilities in tokenization and digital asset execution, positioning the company to lead in the emerging digital asset space.
- Trading net revenue was impacted by subdued market conditions in 2025, although there are signs of improvement entering the new financial year.
- IT costs rose by 17% due to investments in automation and platform resilience, which could pressure future profitability if not managed effectively.
- A one-off charge of GBP4.3 million was incurred due to a customer remediation in Australia, impacting the financial results for FY 2025.
- The shift to Web 3.0 and DeFi requires significant infrastructure upgrades, which may involve substantial investment and operational changes.
- There is uncertainty around the integration and realization of revenues from new partnerships, such as the ASB partnership in New Zealand, which may affect short-term financial performance.
Good morning, everybody, and welcome to our financial year '25 results presentation. My name is Peter Cruddas, and joining me today is David Fineberg, who's Head of Strategic Partnerships; Laurence Booth, Head of Capital Markets; and Matt Lewis, who's Head of ANZ.
In terms of the agenda today, I will provide an exciting update on the future state of CMC. David will then cover the financials. Laurence will provide a strategic update, and Matt will speak on our D2C business before handing back to me to wrap up.
So let's get started. Over the last 10 years or so, we have built a high-performing business around two core verticals, direct-to-consumer and platform technology as a service or B2B. We have created a world-class multi-asset trading and investing journey for retail clients, delivering seamless 24/5 access across global markets. We have also scaled a powerful institutional-grade platform delivering execution, liquidity, and trading infrastructure to fintechs, neobanks in established financial
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