5th Mar 2008 07:00
IG Group Holdings plc05 March 2008 5 March 2008 IG GROUP HOLDINGS PLC Interim Management Statement IG Group Holdings plc ("IG" or "the Group") issues this Interim ManagementStatement in accordance with the EU Transparency Directive and revised UKListing Rules. Unless otherwise stated, trends and figures highlighted belowrefer to the three months ended 29 February 2008 and the corresponding periodlast year. Group revenue for the quarter was approximately £46m compared to £29.7m in thecorresponding quarter in the prior year, an increase of approximately 55%. The rate of account opening in the Group's financial business has continued toaccelerate. The Group continues to consider this a key lead-indicator of thestrength of the business. The Group also continues to benefit from high levelsof equity market volatility, which is an important short-term driver of clientactivity in the Group's financial business. The Group's new offices in France and Spain have been trading for approximatelyfour months. The Group is pleased with the early development of both of thesebusinesses, which has been faster than anticipated. Together these offices arenow opening more than 400 accounts per month and by the end of the quarter theywere already generating sufficient revenue to cover their direct monthly costs. During December the Group completed the purchase of HedgeStreet Inc("HedgeStreet"), a US-based, CFTC regulated, exchange. HedgeStreet commencedtrading, with a limited product set, in early February. While revenue is not yetsignificant, the volume of contracts traded on the exchange has been ahead ofthe Group's expectations. The Group's other US-based business, IG Markets Inc,is on track to commence trading in April. It is not anticipated that either ofthese businesses will contribute materially to Group revenues in the currentfinancial year. Over the last two years the Group has established operations targeting clientsin Singapore, Germany, Italy, Spain and France. Together these operations nowaccount for revenue of over £1m per month and they all continue to experiencerapid revenue growth. The Group continues to evaluate new markets in order tofurther extend its geographic reach. As previously noted, the Group has also made significant investment in itsinfrastructure, primarily in the US and Europe, and in the areas of marketingand consumer education. Costs remain in line with management expectations. It remains impossible to predict future trends in market volatility orcustomers' reaction to any changing market conditions. However, the boardremains confident in the Group's prospects for the current financial year andthat IG is well-positioned for further growth. For further information please contact: IG Group 020 7896 0011Tim Howkins, Chief ExecutiveSteve Clutton, Finance Director Financial Dynamics 020 7269 7200Robert BailhacheNick Henderson This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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