TRADERS who rushed to bet on market swings caused by turmoil in the Eurozone are set to help IG Group increase first-half revenue by nearly 25 per cent.
The spread betting firm yesterday said revenue should rise 23 per cent to more than £193m, marking a swift turnaround after it issued a profit warning in January.
IG has kept costs in line with expectations and has benefited as traders rediscovered their appetite for risk amid the sovereign debt crisis that has spooked markets.
“Following on from a strong first quarter, the group has continued to experience high levels of client activity during the second quarter of its financial year”, IG said yesterday in an update on the six months to 30 November.
Analysts at Numis said IG would benefit from the collapse of broker MF Global, which held about a sixth of the Australian market.
“These customers are probably still trapped in the liquidation process but should return to the market next year, probably looking for a safer place to trade,” James Hamilton and David McCann wrote.
“The MF Global collapse coupled with increased regulation should favour the larger financially stronger groups like IG.”
IG, which says it is the world’s biggest spread-betting company by revenue, competes with unlisted rivals such as City Index and CMC Markets.