IG shares plunge as it slashes revenue forecast
IG’s shares plunged in early morning trading on Friday after it was forced to cut its annual revenue forecast.
The spread betting company saw its share drop 26 per cent to 950p per share. Shares are down 23.7 per cent since January.
The sharp fall follows the group’s revenue falling 14 per cent year on year during the third quarter after it retained less of its customer’s trading activity as revenue on over the counter trading (OTC) business.
OTC trading is where customers can trade assets without using a primary stock exchange.
OTC revenue retention slid to 70 per cent from 80 per cent, which the FTSE 100 group has averaged since its introduction in the second half of 2025.
The online trading platform now expects full year revenue growth to be in “a mid-single-digit per cent range” year on year.
The platform had previously expected revenue to increase between 10 and 15 per cent on an organic basis, after hiking its performance outlook in May.
Market conditions
Earnings before tax are anticipated to be in the “low-40s per cent range” for the financial year, a decline from last period’s 47 per cent.
Chief executive Breon Corcoran blamed the decline on “less supportive market conditions”, as despite the fall in revenue customer demand remained robust.
Organic first trades rose more than 25 per cent, while active customer numbers climbed 17 per cent.
Income generated from OTC customers also grew eight per cent.
The investing platform’s acquisition Underdog, a sports prediction market, also saw net revenue more than double to $105m, ahead of its “seasonally important” fourth quarter.
But the Board expects to meet its medium-term guidance beyond 2026, anticipating further customer growth off the back of continued investment into products coupled with “higher OTC revenue retention.