20th Sep 2016 06:41
LONDON (Alliance News) - Online trading firm IG Group Holdings PLC on Tuesday reported growth in revenue in its financial first quarter to the end of August, despite subdued conditions in the UK market.
The FTSE 250-listed firm said total revenue grew 5.1% year-on-year in the first quarter to GBP111.4 million from GBP106.0 million a year prior.
Revenue increased by 13% in Europe to GBP23.4 million, by 9.0% in Australia to GBP16.2 milliion and by 18% in the Rest of the World to GBP16.4 million, but was down 1.8% in the UK & Ireland, its biggest market, to GBP55.4 million.
IG said it had increased client margin requirements around the time of the UK's European Union referendum in order to preserve long-term relationships and value. This constrained trading activity around this time and was followed by sluggish activity in global markets in July and August, which meant limited trading opportunities were presented for IG's new and existing clients.
Still, IG, said new client trades increased 70% year-on-year in the first quarter, with increases in all regions and with a marked rise in late June in the UK, around the time of the Brexit vote.
Average revenue per client, however, fell in the quarter due to a higher number of new clients starting earlier in the period, the quieter end to the quarter, and the ongoing growth of the firm's stockbroking business.
IG's trading update comes after mid-cap rival CMC Markets PLC earlier this month warned operating income in its first half would be lower than previously expected due to a lack of volatility in markets.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
IG