SPREAD-BETTING firm IG Group believes sustained tough market conditions rather than a European financial transaction tax represent the greatest challenge to its prospects in the medium term.
British firm IG, which runs spread-betting brand IG Index, said yesterday low volatility linked to difficult market trends lay behind a 14 per cent drop in half-year revenue to £169m and a 21 per cent drop in pre-tax profit to £81.1m.
“There is a risk that the current market and economic conditions last for some time,” said chief executive Tim Howkins.
“If these conditions do persist then we might reasonably expect low levels of revenue growth from our more established businesses in the UK and Australia, but higher levels of growth from our newer businesses in Europe, South Africa, Singapore and the US,” Howkins added.
City A.M. Reporter