IG Group reveals ongoing financial growth in Q3

22 March 2018

IG Group has followed up on record results in the first half by announcing further year-on-year financial growth in the three months to February 28, 2018.

Group revenue in the third quarter amounted to £152.9m (€175m/$216.6m), up 30% on £117.4m in the same period last year, while OTC leveraged revenue was also up 31% to £147.5m.

The UK was the company’s main market after it generated £69.2m in revenue in the region, up 35% on last year, while revenue in Europe, the Middle East and Africa (EMEA) also climbed 25% to £41.9m.

Elsewhere, revenue in the Asia-Pacific region increased 29% to £36.4m, while in the US, revenue was up 9% year-on-year to £4.3m.

IG Group also noted an overall 16% increase in clients, with this total amounting to 138.5 million in the third quarter, while revenue per client also increased 12% during the period.

In a statement, IG Group said: “Revenue growth has been strong across all regions and products; the 16% growth in OTC leveraged revenue compared with prior year reflects higher revenue per client, driven by an increase in client trading activity, combined with higher hedging efficiency.

“The business has delivered a strong performance in each of the first three quarters of the financial year.

“It remains difficult, however, to predict the level of revenue in the last quarter of the year, which depends on the level of trading opportunities available to our clients and on the company's hedging efficiency.

“Following its call for evidence in the early part of the year, it is expected that ESMA will soon publish measures to restrict the marketing, distribution or sale to retail clients of CFDs.

“IG continues to believe that any financial impact from the implementation of such measures is unlikely to be significant in FY18.

“The company has made good progress with the actions being taken to mitigate the potential financial impact of regulatory change, and to position the business so that it will continue to deliver for all its stakeholders under a more restrictive regulatory environment.”

Related article: IG Group posts record revenue, profit in first half