IG Group revenues surge as it attracts more customers

SPREAD-BETTING firm IG Group saw revenues rise by 28 per cent in the three months to the end of August, as it enjoyed a 72 per cent increase in new accounts.<br /><br />Revenue rose from around &pound;53m in the corresponding period of last year to &pound;68m, thanks in part to the acquisition of FXOnline Japan.<br /><br />Excluding the purchase of the forex unit, which turned over &pound;6m in the period, revenues at the group would have risen by 17 per cent, IG said. Operating costs were in line with management expectations, while charges on risky debt were lower than one per cent of revenue.<br /><br />The group, led by chief executive Tim Howkins, said it was well positioned for future growth but warned that revenues were unlikely to remain as buoyant as they were during the quarter.<br /><br />&ldquo;The group faces more challenging comparatives in the second quarter, as both revenue and account opening last year were boosted by the volatility caused by the extraordinary market events of September and October.&rdquo;<br /><br />The group opened more than 21,000 new accounts during the quarter, an increase of 72 per cent.<br /><br />Excluding FXOnline, the like-for-like increase was 23 per cent, largely driven by new accounts in the UK and Australia.