www.iggroup.com
IG Group Holdings plc is a United Kingdom-based company, which is principally engaged in running a spread betting market, trading as principal and market maker for foreign exchange, and contracts for difference and acting as a fixed odds bookmaker. During the fiscal year ended May 31, 2008, the Company began trading on a regulated futures and options exchange. The Company hedges unmatched bets and trades, as considered appropriate, to ensure that it is not unacceptably exposed to material losses. The Company principally operates in the United Kingdom, Europe and Asia Pacific. Its direct wholly owned subsidiaries include IG Finance, which is engaged in financing, and IG Group Limited, which is a holding company. On December 6, 2007, the Company acquired HedgeStreet Inc.
IG Group third quarter revenue up 35 percent, lifted by FXOnline
IG Group Holdings PLC said revenue in the third quarter was up 35 percent from a year earlier, lifted by inclusion of FXOnline’s first contribution since it was acquired, however revenue at the core UK Financial business was down 7.4 percent at £31.5 million.
In an interim management statement, the spread-betting business said group revenue in the quarter to February 28 2009 came in at £62 million compared to £46 million in the corresponding quarter.
The group continues to achieve high levels of account opening in its financial businesses. The group's financial businesses opened 18,700 accounts, including 4,400 from FXOnline, compared to 10,500, excluding FXOnline, in the corresponding quarter in the previous financial year. Account opening in the UK remains strong.
The group's six newer offices in Singapore, France, Germany, Spain, Italy and the US continue to deliver very strong growth. In aggregate they achieved revenue of £11.3 million, compared to £2.8 million in the previous third quarter.
Revenue at the Australian business dipped to £6.4 million from £6.9 million.
The Japanese business, FXOnline, achieved revenue of approximately £11 million in the quarter, however, revenue for the final month of the quarter was disappointing as confidence has deteriorated rapidly in Japan in the face of challenging economic conditions and this appears to have had a greater impact on the Japanese client base than is the case elsewhere in the group.
IG has adopted a more stringent approach to credit risk management and it anticipates a charge for doubtful debts in the third quarter of less than 3 percent of revenue, compared to 11.6 percent in the first half of the year.
“It remains difficult to predict future trends in volatility or customer reaction to changing market and economic conditions. However, the continuing strong account openings, together with the ongoing development of the group's offering, leave the group competitively positioned for further growth,” IG Group said.
