IG Group Holdings plc First Quarter Revenue Update (3256B)
20 September 2018 - 4:00PM
UK Regulatory
TIDMIGG
RNS Number : 3256B
IG Group Holdings plc
20 September 2018
20 September 2018
LEI No: 2138003A5Q1M7ANOUD76
IG GROUP HOLDINGS PLC
First Quarter Revenue Update
IG Group Holdings plc ("IG", "the Group", "the Company"), a
global leader in online trading, today issues an update on its
revenue for the three months to 31 August 2018, the first quarter
of its FY19 financial year. The trends and figures highlighted
below refer to this period and the corresponding period last
year.
Revenue was GBP128.9m in the first quarter of FY19, 5% lower
than in the same period in the prior year, which was a record
quarter. The heightened level of volatility in financial markets
and client activity experienced in FY18 have not continued into
FY19.
The table below sets out revenue and key performance indicators
by reporting segment. This period reflects the ESMA prohibition on
offering binary options to retail clients from 2 July and the
measures relating to the provision of CFDs to retail clients from 1
August:
Reporting Segment(1) % Change % Change Change
in Revenue
Revenue(1) (GBPm) Clients(1) ('000s) per client(2)
----------------------------- --------- --------- ---------------
Q1 FY19 Q1 FY18 Q1 FY19 Q1 FY18
----------------------------- --------- --------- --------- ---------- --------- --------- ---------------
UK 53.9 58.8 (8%) 34.0 39.2 (13%) 6%
EMEA 34.4 39.0 (12%) 27.2 30.2 (10%) (2%)
APAC 35.5 33.1 7% 26.3 25.2 5% 3%
Leveraged OTC 123.8 130.9 (5%) 87.5 94.6 (7%) 2%
--------- --------- ---------- ---------
US 3.9 3.4 14% 9.1 10.3 (12%) 29%
Share Dealing & Investments 1.2 0.9 37% 37.2 24.2 54% (11%)
Multi product clients - - - (4.9) (4.1) 18% -
---------------
Group 128.9 135.2 (5%) 129.0 124.9 3% nm
--------- --------- ---------- --------- ---------------
In November 2017 IG launched an online process to enable its
sophisticated clients who meet the required criteria to apply to
become categorised as an elected professional client. The
proportion of UK and EU revenue generated by clients who at the end
of the period were categorised as professional was over 50% in Q1
FY19, in line with the Company's previously stated expectation.
The volume of trading by clients categorised as retail clients
in the UK and EU was, as expected, significantly lower in August
than in July following the implementation of the ESMA measures. It
is not possible to draw firm conclusions from a one month period as
it will take time for retail clients to adapt to the new rules and
change their trading behaviour. The Group's performance in the
month of August has not changed the Company's previously stated
view that the impact of the ESMA measures on historic revenue would
have been a reduction of approximately 10%.
The Group has continued to make progress with its strategic
initiatives. The Group's German subsidiary has received a licence
in principle, subject to standard conditions, from BaFin to offer
financial services to EU clients. This provides certainty that IG
will continue to be able to offer its regulated financial products
in all EU member states following the UK's planned exit.
There will be a conference call for analysts and investors at
8.00am (UK time) today. The call can be accessed by dialling +44 20
3059 5868. The audio recording of the conference call will be
archived for access at www.iggroup.com/investors, along with a full
transcript.
The next planned performance announcement from IG is a short
pre-close trading update, currently scheduled for 4 December
2018.
For further information, please contact:
IG Group FTI Consulting
Liz Scorer Neil Doyle / Ed Berry
020 7573 0727 020 3727 1141 / 1046
investors@iggroup.com
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
derivatives firm, it continued leading the way by launching the
world's first online and iPhone trading services.
IG is 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, February 2018)
(1) The means by which we account for these figures is
consistent with our previous statements. Please refer to our FY18
Annual Report for these definitions.
(2) nm (not meaningful) - has been used as the Group believes
that the most meaningful measure of revenue per client is by
business line and so will no longer be reporting change in revenue
per client for the Group.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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