Portfolio

IG Group first-half revenue set to dip

By Michele Maatouk

Date: Thursday 05 Dec 2019

IG Group first-half revenue set to dip

(Sharecast News) - IG Group said on Thursday that trading revenue for the first half of the year was set to come in just a touch below the previous year.
The online trading provider said net trading revenue for H1 FY20 is expected to come in at around £250m versus £251m in the same period a year ago, which benefitted from two months of trading prior to the introduction of product intervention measures by the European Securities and Markets Authority (ESMA).

Revenue in its core markets is expected to decline by 6% to £210m.

IG said it had continued to build the size and quality of the active client base in its core markets, which is the key driver of revenue growth in the medium term. The core business served on average 78,500 over-the-counter leveraged clients per quarter in its core markets in the first half, up 4% on the quarterly average in the second half of last year.

"The reduction in revenue in these markets is due to the prior year period including two months of trading prior to the implementation of the ESMA measures, and the lower level of trading by ESMA region professional clients in Q2 FY20 compared with a strong Q2 FY19," it said.

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