IG Group claims revenue growth in ‘challenging’ quarter

20 September 2016

IG Group has said that despite the three months to August 31 being a “challenging” period for the firm, it was able to perform “relatively well” and post year-on-year revenue growth.

The derivatives trading and financial spread betting operator said overall revenue amounted to £111.4 million (€129.8 million/$145.5) in the first quarter, which represents an increase of 5.1% on the £106 million generated in the corresponding period last year.

IG Group noted revenue growth across all of its geographical locations with the exception of the UK and Ireland, the firm’s largest market, with revenue down 1.8% to £55.4 million.

The ‘Rest of World’ market experienced the most growth, with revenue up 18% year-on-year to £16.4 million, which now places it ahead of Australia.

Meanwhile, the company recorded an increase in active clients across all of its market, with the total number up 18% year-on-year.

The UK and Ireland saw the biggest gain with a 24% jump, while Europe and Rest of World experienced increases of 18% and 15% respectively.

However, revenue per client dropped 11% overall, with the UK and Ireland seeing this fall by 21%, although Australia and Rest of World saw slight gains.

In a statement, the company said: “Revenue was ahead in all regions except the UK, where the impact of the management actions in the period surrounding the EU referendum and the subsequent dull markets was felt most.

“Supported by increased effective marketing spend, the level of new client first trades was very strong.

“At a Group level, this metric was ahead of the prior year period by 70%, reaching a new record level, with increases in every region, and ahead of the final quarter of last year by around 30%.

“Unsurprisingly, the increase in the number of new clients was once again most marked in the UK and in late June.

“A high number of new clients beginning part way through the period, combined with the quieter end to the quarter and the ongoing growth of the stockbroking business, resulted in the lower average revenue per client in the UK.”

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