IG Group hit by subdued markets

 
City A.M. Reporter
Subdued financial markets have knocked revenue at IG Group in recent weeks, the British spread-betting company said on Tuesday, as it reported a 17.3 per cent rise in full-year revenue, driven by growth in Europe and Australia.

"Revenue in the first six weeks of the current financial period has been lower than the same period last year, as dull markets in this period have presented our clients with fewer trading opportunities," the firm, which says it is the world's biggest spread-betting company by revenue, said in a statement.

"Under normal market conditions, we continue to expect modest growth in revenue for the year as a whole," it added.

IG, whose rivals include unlisted firms City Index and CMC Markets, said revenue for the twelve months to the end of May was £366.8m.

Adjusted profit rose 13.8 per cent to £185.7m while adjusted earnings per share climbed 15.3 per cent to 37.54 pence a share.

IG's European business saw revenues up 26 per cent to £72.2m, Australia rose 22 per cent to £58m while the United Kingdom, IG's largest market, was up 15 percent to £191.8m.