IG Group set to beat forecasts with revenue growth in FY20
Spread betting and contracts for difference (CFD) provider IG Group has said it expects to post higher-than-expected year-on-year revenue growth for its 2020 financial year, due to elevated financial market volatility and high levels of client trading activity in Q4.
In a pre-close trading update, IG Group said that net trading revenue for the 12 months to 31 May 2020 is anticipated to amount to £649m (€725.3m/$812.5m), which would be an increase of 36.1% on £476.9m in the previous year.
IG Group said its full-year performance looks sets to be boosted by growth in the fourth quarter, with the business benefitting from market volatility created by the novel coronavirus (Covid-19) pandemic.
Net trading revenue for Q4 has been estimated at £259m, significantly higher than the £173m IG Group had originally forecast in its previous trading update published on 24 April.
IG Group also noted its response to the Covid-19 crisis in recent months helped the business mitigate the impact of the outbreak. It said ongoing investment in communications and infrastructure has enabled staff to work from home, while it also committed to further investment in technology in order to provide the best service for its clients.
“The group will take a cautious approach in returning to its offices around the world, in keeping with the guidance of local governments, with the priority being the safety of its staff,” IG Group said.
IG Group plans to publish the full results for its 2020 financial year on 23 July.
The trading update comes after IG Group last month also appointed Charlie Rozes as its new chief financial officer. Rozes joined IG Group on 1 June, replacing Paul Mainwaring, who in January announced his intention to retire.