IG Group reports quarterly rise

London-based spreadbetting firm IG Group Holdings has released its interim financial results for its third quarter showing an eleven percent year-on-year increase in revenues to £69 million.

IG Group revealed its UK, Australian, European and Singaporean financial businesses, which comprised 90 percent of its revenues in the period, grew by 29 percent while operating costs were in line with management expectations.

“This revenue growth was achieved against a backdrop of significantly reduced volatility in both equity and foreign exchange markets,” read a statement from IG Group.

“The strong equity market rally, which helped stimulate client activity through much of 2009, showed signs of weakness in the first two months of 2010.”

IG Group stated that its financial business for the period ending in February achieved revenues of £37.2 million compared to £31.4 million for the corresponding three months in 2009, which was an increase of 18 percent. It revealed that this increase was driven by ‘continued growth in the number of clients dealing’.

“The Group’s Australian office continued to deliver strong growth with revenues increasing by 67 percent from £6.4 million to £10.7 million,” read the statement from IG Group.

“This growth benefited from favourable exchange rate movements and was 34 percent on a constant currency basis.

“The Group’s European offices achieved revenue of £12.1 million, up from £7.9 million, an increase of 52 percent. All of the established European offices achieved good levels of growth but growth was strongest in Germany and France.

“The Group continues to achieve high levels of account opening in its financial businesses, which it considers a key lead indicator of future growth prospects. Excluding Japan, the Group’s financial businesses opened 14,900 accounts, compared to 14,300 in the corresponding quarter in the previous financial year. Account opening in the UK remains strong.”