Quiet market stunts IG Group progress in first quarter
Financial spreadbetting provider IG Group Holdings has cited the impact of a quiet market as the main reason behind a year-on-year slump in revenue during the period from June 1 to September 16, 2014.
In an interim statement, the company posted total revenue of £85.6 million (€107.7 million/$139.5 million) in the first quarter, which represents a drop of 9% on the £93.6 million achieved in the corresponding period last year.
IG group’s operations in the UK market proved to be most successful with £45.9 million in revenue, down just 3% on last year, while Europe experienced a year-on-year fall of 9% to £18.4 million in revenue.
Revenue from the firm’s Australian business dropped 10% to £12.3 million, while revenue from operations for the Rest of World plunged 25% to £9 million.
Meanwhile, the number of total active clients fell 9% despite IG Group having attracted new business in Europe and the Rest of World.
In addition, despite the UK having seen an increase in the amount of revenue per client, the group’s total figure fell by 6%.
In a statement, IG Group said: “The first three months of the company's year were particularly quiet in the financial markets, with volumes and volatility close to historic lows and the continuation of recent weakness in forex activity.
“The majority of the year-on-year difference occurred in June, which was unusually strong in the prior year.
“The company will progress several initiatives through this year, as part of its long-term diversification strategy, with the aim being to make IG the default choice for active traders globally.”
Related article: IG Group reports widespread full-year growth