22nd Sep 2015 06:59
LONDON (Alliance News) - Trading house IG Group Holdings PLC on Tuesday said its revenue increased substantially in the first quarter against a weak comparative, but said the volatile market conditions make it difficult to predict an outcome for the full year.
The spread betting and contracts-for-difference company, which gives retail traders access to financial markets, said it is trading in line with its expectations at present, with revenue in the first quarter to the end of August up 24% to GBP106.0 million, though it noted the same period last year was "particularly subdued".
IG said that in what is normally a very quiet period for the business, financial markets presented a number of trading opportunities for investors in the quarter, including the debate around Greece's membership of the eurozone and the turmoil in the Chinese economy, the latter of which served to push client activity to a peak at the end of August.
Client numbers were ahead year-on-year in the quarter, up 19%, and 4.9% higher than in the fourth quarter of its 2015 financial year. Revenue also grew in all regions, with the UK continuing to perform well but client numbers also higher in Europe, though this was partially offset by a decline in average revenue per user.
Overall, IG said it is well positioned for the full year thanks to a strong start, but said it is too early to draw many conclusions about how markets will react over the course of the year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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