IG Group’s First Interim Results Fall
CFDs and stockbroker IG Group reported falling net revenues for the first half of fiscal 2020 ended November 30, 2019. Their 2020 ends May 31, 2020
The provider said it expected net trading to fall around £250 million for H1 last December. The recent report proved accurate results with £249.9 million net trading.
For fiscal 2019, they had £250 million, which was 0.44 percent higher than the current figure. The result was from two months prior to the European Securities and Market Authority’s (ESMA) product intervention measures.
Meanwhile, operating profit was at £100.1 million for the first half of 2020. Measured against the £112.5 million achieved year-on-year, this represents a decline of 11.0 percent.
Over the counter (OTC) leveraged active client members rose by 4 percent, OTC in other markets increasing by 5 percent.
Revenue was at £40.4 million in the first half as a £12.2 million increase than in 2019. The results were from continued strong performance in Japan and emerging markets.
Japan’s revenue grew more than 80 percent in 2020 compared to 2019. The figure was alongside increasing revenues from its institutional business at 18 percent.
What IG Group Expects
Despite the inching decrease, IG Group hopes to return its revenue growth in fiscal 2020. Total operating expenses, excluding variable remuneration, would be around £30 million higher than in 2019.
The group seeks to provide “the world’s best trading experience,” said Chief Executive June Felix. The group will focus on a client-centric approach based on their passion and leadership.
Based on their multi-year strategy, the group is on track to deliver medium-term growth targets. Growth in their Core Markets encouraged their numbers, which are part of their Significant Opportunities segment.
Mike McTighe will become the provider’s Chairman in February.
Amid treading results for the first half of fiscal 2020, Felix believes that IG can expand further. The company can exploit its scale, skills, and technological expertise to serve new client segments and expand further globally.
