Spread better IG eyes profit rise this year
SPREAD betting firm IG Group has said it expects to post an increase in full-year profits this year.
The British company said it anticipated a three per cent increase in its full-year pre-tax profits to £163m in the year to 31 May.
IG, which reports detailed annual results next month, also said it expected trading revenue for the year of £320m, an increase of seven per cent.
The group said its financial business grew revenue at nine per cent in the year when the Japanese market, which is undergoing regulatory change, is stripped out.
However, the extended holiday period in April for the royal wedding had hit revenue for its final quarter of this year, the firm said.
IG said it expected third quarter revenues to be slightly down on the same time a year earlier.
London-based IG said it planned to close its sports operations, branded as Extrabet, selling most of its client list to peer Spreadex.
The group said its sports business now represented less than 2.5 per cent of its total revenue, due to its substantial fixed cost base and much lower percentage of profits.
IG said it had been unable to secure a sale of its sports business in its entirety and had decided to make staff at Extrabet redundant.
It said costs relating to closing the business would include a £5.25m non-cash write off and £2.5m in cash for redundancy payouts and lease-related costs.
The spread betting firm remained bullish on its prospects for growth, despite volatile market conditions.
“Continued focus on building the number of high quality active clients and development of the group’s offering leaves IG well positioned for further growth,” the company said.