One of the major UK online broker IG Group Holdings plc has just released its trading update for the third quarter of its fiscal year 2016, showing its revenues reaching a new high, supported by increased volatility on financial markets.
IG Group revenues for the quarter, ending February 29, 2016 (or a third quarter of IG Group’s 2016 fiscal year), have reached £122.0 million, what is an 18% jump in comparison with the previous year. This increase in revenues could be seen all over the regions. We could mention Europe, where IG Group posted a 24% hike, while in Ireland and UK it rose 13%.
Moreover, it should be mentioned, that the company saw solid results even in the second quarter of the same financial year, reaching £214.8 million, so IG only keepsin its path of success.
Active client numbers and client first trades, the best proxy for new clients, also hit new highs for the Group, thanks to both a conducive market backdrop and ongoing improvements to its online marketing capability. Active client numbers were ahead of the same quarter in the prior year by 11% and ahead of the second quarter of this year by almost 10%. Client first trades were 26% ahead of the prior year period and 17% ahead of the second quarter of this year.
Outlook
IG stated that it entered the fourth quarter in a strong position, with good execution across the business and healthy new client inflow.
In France, regulatory discussions around possible limits on direct marketing of OTC derivative products go on. Year-to-date, less than 5% of IG’s new clients have been resident in France. IG recruits clients in France via many channels, some of which would likely be impacted by any direct marketing restrictions. IG expects the situation to be clarified later this year.
So looking beyond FY 2016, IG has a very clear strategy to deliver future growth in revenue and earnings and continues to make good progress on initiatives which support it.
The official IG Group statement can be found here.
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