IG Group sees revenue increase but remains cautious
IG Group saw revenue increase by 16% in the third quarter, but said it remains difficult to predict future trends in volatility.
Spreadbetting specialist IG Group increased revenue in the third quarter by 16%, it said in an interim management statement released this morning.
Group revenue increased from £68m to £79m quarter-on-quarter, however volumes were stronger at the beginning of the quarter and decreased later due to “low volatility in all of the main asset classes” which “amplified the normal seasonal effect of holidays in the northern hemisphere”, the company said.
IG Group’s continental European office saw the largest growth in revenue in the last quarter, rising 46% quarter-on-quarter to £12.7m.
As predicted, the company saw a dramatic fall in forex volumes in Japan in August, when leverage restrictions came into force. Volumes began to recover in September but still remain 30% down from the point at which leverage limits were imposed. “It is anticipated that clients will continue to adapt their behaviour to a lower leverage environment in the coming months,” the company said in its statement.
During the quarter, IG Group launched an iPhone App with the Apple Store for its UK spread betting business, with a multi-lingual CFD version scheduled for release in a few months’ time.
Commenting on the results, IG Group said: “It remains difficult to predict future trends in volatility or customer reaction to changing market and economic conditions. Growth in the number of active customers and the continued development of the Group’s offering leave the Group well positioned for further growth.”