LONDON (ShareCast) - (Sharecast News) - Online trading platform IG Group reported flat first-quarter revenues on Thursday, said it performed well and backed its expectations for a return to revenue growth in FY20.
In the three months to the end of August, revenue was steady at £129.1m versus £128.9m a year earlier.

IG said it "performed well" in the quarter, benefitting from growth in the number of active clients and from increased client trading activity as a result of the favourable market conditions in August. It noted that new trading restrictions from the European Union's securities watchdog, ESMA, affected trading for one month of the quarter.

IG pointed out that revenue was 11% higher when compared with the average of the quarterly periods in the prior year when the ESMA measures were in effect throughout. This demonstrate the company's ability to deliver revenue growth in a more restrictive regulatory environment, it said.

The group backed its previous target for revenue growth in the core markets of 3-5% a year over the medium term and said it continues to expect a return to revenue growth in FY20.

Over-the-counter leveraged revenue was up 13% during the quarter to £124m, while exchange-traded derivatives revenue fell 12% to £3.8m and stock trading and investments revenue declined 19% to £1.3m.

Shore Capital said flat revenues are "a good outcome given the same period last year included two months of trading before ESMA's leverage restrictions were applied".

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