Spread betting firm IG Group wins record revenues in its first quarter, despite missing the EU referendum effect

 
Lucy White
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UK client numbers decreased after a surge last year due to the EU referendum (Source: Getty)

The online trading and spread betting firm IG Group has today announced record revenues in the first quarter of its financial year, as its client base continued to expand.

Shares in the group were up 2.4 per cent in early trading.

The numbers

IG Group's revenues hit £135.2m in the three months ending in August, up 21 per cent from the same time last year.

UK leveraged over-the-counter (OTC) revenues lifted by 11 per cent, while the rest of Europe, the Middle East and Africa (EMEA) hiked their OTC revenues by 31 per cent.

The Asia Pacific region outperformed even more, as OTC revenues increased by 32 per cent. However the UK still contributed the most, at £58.8m.

Read more: IG Group share price jumps as it reports revenues are expected to increase

Why it's interesting

OTC client numbers in the UK slipped by 10 per cent to 39,200, a fall which IG was expecting “due to the particularly strong new client inflow in the prior period reflecting the short-term trading opportunities created by the EU referendum”.

The EMEA figure was boosted by five per cent, while Asia Pacific numbers also decreased by three per cent.

The biggest rise in client numbers was from the share dealing and investments clients, who increased by 135 per cent and delivered 86 per cent more in revenues.

What IG said

“The retail leveraged trading industry is under scrutiny by regulators globally, with particular emphasis in the UK and Europe,” the group said.

“IG will continue to lead the way in the industry with respect to how it markets its services, how it deals with clients, and through the products and levels of client service it offers.”

The group noted that although “none of the recently announced regulatory changes have adversely impacted the business to date”, the effects of these regulations “remain uncertain”.

Read more: Spreadbetters respond to the FCA's new rule proposals

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