IG Group reveals mixed results in Q3

IG Group suffered a 15% year-on-year drop in revenue in the UK and Ireland during the third quarter, but was able to report growth in other markets.

Overall revenue at the online trading company came in at £117.4 million (€135.8 million/$146.7 million) during the three months to February 28, a drop of 15% on the £122 million posted in the corresponding period last year.

UK and Ireland revenue amounted to £53.5 million, compared to £62.7 million in Q3 of last year, although this was the only market in which the company posted a loss.

Revenue in Europe climbed 3.3% year-on-year to £26.6 million. Australian revenue was almost flat at £17.3 million and the Rest of World jumped 23% to £20 million.

IG Group recorded an overall rise of 13% in terms of change in active clients, with the Rest of World sector seeing the highest increase of 22% in the period.

Change in revenue per client dropped 15% across the group, with the UK and Ireland market experiencing the largest drop with a 23% year-on-year decline.

The mixed third-quarter results come after a positive first half for the company, which achieved record revenue of £224.9 million in that six-month period.

As a result, total revenue for the year-to-date, through to the end of Q3, stands at £362.3 million, 8% more than the £336.8 million posted at the same point last year.

All markets in which IG Group is active achieved more revenue in the first nine months this year than in the previous period, with the Rest of World sector experiencing the most growth, with revenue up 26% to £56.5 million.

Despite the losses in Q3, the UK and Ireland remains market the largest source of income for the company, having posted revenue of £173.5 million in the nine-month period, up by a minimal 0.2% on last year.

In a statement, IG Group said: “Following a quiet third quarter in financial markets, the fourth quarter has started better for IG, although it is impossible to predict the market conditions for the rest of the year or to draw precise conclusions at this stage.

“As the company enters this final quarter, none of the announced regulatory changes has yet had any impact, client recruitment remains strong and the underlying business is performing well.”

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