IG revenue up despite Japan loss

SPREAD better IG Group has seen quarterly revenue figures jump 11 per cent despite announcing losses in its Japanese business.

Revenue for the period ending 28 February climbed to £69m compared to the same period last year when income came in at £62m.

The London-based company said the rise in revenue related to a 29 per cent overall growth in business for its UK, European, Australian and Singaporean outposts, which make up 90 per cent of the group’s overall business.

Chief executive Tim Howkins said the majority of the business is currently growing very fast and IG’s results were mainly driven by the recruitment of new accounts.

He said that in the UK alone, IG is opening 3,000 new accounts a month, while across the remainder of its business – excluding Japan – it opened 14,900 for the quarter.

“We saw a disappointing performance in Japan as we lost some clients, but we are beginning to turn the corner as February numbers were up on Januarys,” said Howkins.

IG’s Japanese revenue fell by 54 per cent to £5m from £10.8m after it lost clients during the spring and summer of 2009.

UK?revenue was up by 18 per cent to £37.2m, however Australia was IG’s strongest performer after quarterly revenue rose by 64 per cent to £10.7m. Europe saw income climb by 52 per cent to £12.1m during the same period.

Outlook for the group remains positive after it launched a Chinese representative office earlier this week and it it currently in discussions with the South African Reserve Bank hoping to gain permission to do business in the region.