5th Dec 2019 08:51
(Alliance News) - IG Group Holdings PLC on Thursday said its revenue slipped in the first half of its current financial year due to new European regulations.
The FTSE 250 stock was trading 3.3% lower in London at 666.40 pence a share.
The provider of trading in contracts for difference and financial spread betting said it expects net trading revenue in the six months to the end of November to come in at around GBP250 million compared to the GBP251 million it reported a year prior.
The company noted that it has 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.
IG Group said revenue in its core markets in the first half is expected to be around GBP210 million, 6% lower than in the same period of the year before.
The core business served, on average, 78,500 clients per quarter in the first half, 4% higher than the quarterly average in second half of its financial 2019.
However, the reduction in revenue was due to the prior-year period including two months of trading prior to the implementation of the European Securities & Markets Authority measures.
In 2018, the European regulator placed restrictions on marketing, distribution or sale of CFDs to retail clients, in order to protect investors from losing more money than they put in, restrict the use of leverage and incentives, and ensure that risk warnings are provided.
IG is scheduled to report its half-year results on January 21 next year.
By Evelina Grecenko; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
IG