Business booms for IG Group

London-based spreadbetting firm IG Group Holdings has released its interim results for the six months to the end of November showing a 14 percent year-on-year increase in revenues to £143.8 million.

Earnings before interest, tax, depreciation and amortisation rose 34 percent year-on-year to £81 million while the firm’s adjusted profits before tax were also up 34 percent compared to the same period in 2008 to £78 million.

“We are pleased with this revenue growth given that the comparative period in 2008 itself showed strong growth of 47 percent over its prior year comparative period in 2007,” read a statement from IG Group.

“This was due to equity and foreign exchange markets being extremely volatile in September and October of 2008, which resulted in a significant boost in client activity and revenues for those months. Volatility was much lower during this first half, although the impact of this was partially offset by a strong rally in equity markets, which resulted in a boost in the proportion of our revenues coming from clients trading individual stocks.”

IG Group stated that its earnings margin hit 56 percent for the six-month period, which was an eight percent year-on-year improvement, while it revealed that it was planning ‘some additional investment’ over the next six months to enhance its positions and capitalise on organic growth opportunities.

“IG Group has again delivered record results with strong growth in both revenues and profits,” said Tim Howkins, Chief Executive Officer for IG Group.

“We continue to experience strong levels of activity and account opening both in the UK and overseas, where our expansion continues. All our markets have great potential and IG Group is well positioned to deliver further growth.”