IG Group Hldgs plc - Trading Update
LEI No: 2138003A5Q1M7ANOUD76
IG is a business with a clear purpose - to empower informed, decisive, adventurous people to access opportunities in the financial markets. Revenue in any period is impacted by the level of financial market volatility and the extent to which clients identify opportunities to trade. Financial market volatility has been sustained at exceptionally high levels since the last week of
The Board and the Group's 1,950 employees are conscious of the fact that many businesses and individuals are facing considerable hardship as a result of the COVID-19 virus, and recognise that it is fortunate that IG's business performs well in periods of financial market volatility. The Group has successfully implemented its comprehensive business continuity plan in response to the virus. The Group's significant long-term investment in communications and technology infrastructure has enabled all employees to work safely from home, and IG continues to provide the best possible service for its clients when they choose to trade the financial markets. The Group is in regular communication with its staff members to ensure their safety, and that of their families, during this challenging time.
The high levels of volatility have persisted through March and into April, and the Group has continued to see high levels of client trading activity and further increases in the number of active clients. Revenue in the first 36 trading days of the 61 in Q4 FY20 is estimated to be around
IG's track record of sustainable revenue growth over the medium and long term has been delivered through growth in the size and quality of its active client base. IG has continued to attract new, high quality, OTC leveraged clients, with record numbers of applications during this period. In the first 36 trading days of Q4 over 22,500 new OTC leveraged clients have traded with the Group for the first time, compared with the 36,000 new OTC leveraged clients in the first three quarters of FY20. Each client cohort that the Group recruits has an enduring value for IG generating revenue for many years.
The Company has previously guided that operating expenses, excluding variable remuneration, are expected to increase by around
The Company is today updating that guidance. Operating expenses, excluding variable remuneration, are now expected to increase by around
A proportion of the remuneration paid to the Group's employees is variable, and is dependent on the extent to which annual financial and non-financial performance targets are achieved. As a result of the high levels of revenue in Q4 FY20 to date, the Company expects that the charge for variable remuneration in FY20 will be around
In addition, as detailed below, the Company has committed
The recent sustained level of financial market volatility and revenue is unprecedented, and it is not possible to determine how long it will persist or how clients will continue to respond. It therefore remains difficult to predict accurately the level of revenue in the final quarter of this financial year.
The Group's financial position remains very strong. The Board reiterates that it expects to maintain the
The Group's next scheduled market update is on
The Company has committed
To achieve these ambitions,
In addition, IG will maintain and extend its range of local-led employee initiatives across the globe to help fight against the virus. This includes a
"During such a prolonged period of volatility, we've seen high volumes of clients choosing to trade markets with IG, reflecting our business resilience, our robust systems and our commitment to delivering the best possible trading experience.
We are encouraged with the resilience and performance of our employees in such challenging times for everyone.
For further information, please contact:
IG Group Investors
020 7573 0727 07500 771109 07703 330199
Disclaimer - Forward-looking statements and market abuse regulations
This statement, prepared by
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"), the disclosure of which has been delayed. Upon the publication of this announcement via
IG empowers informed, decisive, adventurous, people to access opportunities in over 16,000 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 provide the world's best trading experience. 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-product trading company which allows retail, professional and institutional clients to trade via its platforms 24 hours a day, 7 days a week*. IG is 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 stock trading service in the
IG is a member of the
**Based on revenue excluding FX (from published financial statements,
This information is provided by RNS, the news service of the
Quick facts: IG Group
Market Cap: £3.03 billion
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