21st Mar 2019 08:04
LONDON (Alliance News) - Online trading firm IG Group Holdings PLC said on Thursday a reduction in market volatility led to a decline in third quarter revenue.
IG's revenue for the third quarter ended March was GBP108.0 million, 12% lower than the second quarter, though client numbers did rise 1% to 125,600.
IG said the decline in volatility led to a fall in revenue per client, with February in particular being a period of low volatility and market activity.
This is the second quarter affected by new European Securities & Markets Authority regulations regarding the offering of contracts for difference.
In the area covered by ESMA, revenue fell 15% quarter-on-quarter, while in Asia-Pacific revenue was down 9% and in the areas of Europe, the Middle East & Asia outside of ESMA regulations, revenue climbed 6%.
For the first nine months of IG's financial year, which ends June, group revenue has declined 15% year-on-year to GBP359.0 million, with client numbers slipping 9% to 163,300.
This reflects ESMA measures, IG said, and an "exceptional" third quarter in its previous year when revenue was helped by heightened interest in cryptocurrencies.
Looking ahead, IG said annual revenue is difficult to predict given market volatility, but reaffirmed its belief the figure for its year ending June will be lower year-on-year.
IG has also reaffirmed full-year cost guidance, and also confirmed plans for a 43.2 pence total dividend, while will be flat on the prior year until earnings improve.
Related Shares:
IG