IG Group Holdings plc First Quarter Revenue Update (3606R)
21 September 2017 - 4:00PM
UK Regulatory
TIDMIGG
RNS Number : 3606R
IG Group Holdings plc
21 September 2017
21 September 2017
IG GROUP HOLDINGS PLC
First Quarter Revenue Update
IG Group ("IG", "the Company"), a global leader in online
trading, today issues the following update on its revenue for the
three months to 31 August 2017, the first quarter of its 2018
financial year. The trends and figures highlighted below refer to
this period and the corresponding period last year.
IG delivered a record revenue quarter, in relatively quiet
financial markets. At GBP135.2 million, revenue was 21% ahead of
the first quarter of the prior year (GBP111.4 million). The prior
year period was impacted by proactive management actions to protect
clients from the extreme volatility at the time of the UK's EU
Referendum.
Revenue and key performance indicators by reporting segment are
as follows:
Reporting Segment % Change % Change Revenue
Revenue (GBPm) Clients ('000s) per client
----------------------------- --------- --------- ------------
Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17
----------------------------- -------- -------- --------- -------- -------- --------- ------------
UK 58.8 53.0 11% 39.2 43.4 (10%) 23%
EMEA 39.0 29.8 31% 30.2 28.7 5% 24%
APAC 33.1 25.2 32% 25.2 25.6 (2%) 34%
Leveraged OTC 130.9 108.0 21% 94.6 97.7 (3%) 25%
----------------------------- -------- -------- --------- -------- -------- ---------
US 3.4 3.0 15% 10.3 9.0 15% (1%)
Share Dealing & Investments 0.9 0.5 86% 24.2 10.3 135% (21%)
Multi product clients (4.1) (2.5) 68%
------------
Group 135.2 111.4 21% 124.9 114.5 9% 11%
----------------------------- -------- -------- --------- -------- -------- --------- ------------
The financial tables above contain numbers which have been rounded
whilst all year-on-year percentages are calculated off underlying
unrounded numbers
Client numbers in the UK were, as expected, lower than in the
equivalent quarter in the prior year due to the particularly strong
new client inflow in the prior period reflecting the short-term
trading opportunities created by the EU referendum in June
2016.
The retail leveraged trading industry is under scrutiny by
regulators globally, with particular emphasis in the UK and Europe.
IG will continue to lead the way in the industry with respect to
how it markets its services, how it deals with clients, and through
the products and levels of client service it offers. IG believes in
doing the right thing, rather than simply complying with minimum
regulatory requirements.
Although none of the recently announced regulatory changes have
adversely impacted the business to date, as previously noted, the
nature and timing of potential regulatory changes in the UK and
some other key markets for the Group remain uncertain. It is
therefore difficult to predict what impact, if any, regulatory
change may have on the Group this financial year and beyond.
Paul Mainwaring, Chief Financial Officer and Kieran McKinney
will hold a conference call for analysts and investors at 8.30am
(UK time) today. The call can be accessed by dialling +44 20 3059
8125. The audio recording of the conference call will be archived
for access at www.iggroup.com/investors, along with a full
transcript.
Please note that Kieran McKinney will be leaving the Group. We
would like to express our sincere thanks to Kieran for his
significant contribution to the Group over the past five years,
both in leading our external communications activities and as a
member of the Executive Committee. Liz Scorer will become the
primary initial point of contact for investors and analysts with
effect from the end of September.
The next planned performance announcement from IG is a short
pre-close trading update, currently scheduled for 5 December
2017.
For further information, please contact:
IG Group
Liz Scorer 020 7573 0026 / 0727
investors@iggroup.com
FTI Consulting
Neil Doyle / Ed Berry 020 3727 1141 / 1046
About IG
IG empowers informed, decisive, adventurous people to access
opportunities in over 15,000 financial markets. With a strong focus
on innovation and technology, the company puts client needs at the
heart of everything it does.
IG's vision is to be a global leader in retail trading and
investments. Established in 1974 as the world's first financial
spread betting firm, it continued leading the way by launching the
world's first online and iPhone trading services.
IG is now an award-winning, multi-platform trading company, the
world's No.1 provider of CFDs* and a global leader in forex. It
provides leveraged services with the option of limited-risk
guarantees, and offers an execution-only share dealing service in
the UK, Australia, Germany, France, Ireland, Austria and the
Netherlands. IG has recently launched a range of affordable, fully
managed investment portfolios, to provide a comprehensive offering
to investors and active traders.
It is a member of the FTSE 250, with offices across Europe,
including a Swiss bank, Africa, Asia-Pacific, the Middle East and
the US, where it offers on-exchange limited risk derivatives via
the Nadex brand.
*Based on revenue excluding FX (from published financial
statements, October 2016)
(1)References in this statement to "revenue" refer to net
trading revenue, which is trading revenue excluding interest on
segregated client funds and is net of introducing broker
commissions.
(2) References in this statement to active clients are to the
number of clients trading during the period referred to and
references to average revenue per client are to revenue for the
period referred to divided by the number of active clients in that
period.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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