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IG Group reports record quarter despite quieter financial markets, although regulatory worries remain

The FTSE 250-listed firm - which provides online stockbroking and trading services to retail investors - said its revenue increased by 21.4% to £135.2mln for its first quarter ended August 31

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IG said its UK revenue rose by 11% to £58.8mln, although actual UK client numbers fell by 10%

IG Group Holdings PLC (LON:IGG)  has reported record quarterly revenue, as a 68% leap in its multi-product client base helped it counter quieter financial markets, although regulatory worries continue to overshadow the firm.

In a trading update, the FTSE 250-listed firm - which provides online stockbroking and trading services to retail investors - said its revenue increased by 21.4% to £135.2mln for its first quarter ended August 31.

READ: IG Group's full year profit rises despite strict regulation and low volatility in financial markets

IG pointed out that the prior year period “was impacted by proactive management actions to protect clients from the extreme volatility at the time of the UK's EU Referendum.”

The group said its UK revenue rose by 11% to £58.8mln, with revenue per client up 23%, although actual UK client numbers fell by 10%.

The company said client numbers in the UK were, as expected, lower due to particularly strong new client inflow in the prior period reflecting the short-term trading opportunities created by the EU referendum in June 2016.

Regulatory scrutiny

IG noted that the retail leveraged trading industry is under scrutiny by regulators globally, with particular emphasis in the UK and Europe. 

It said: “Although none of the recently announced regulatory changes have adversely impacted the business to date, as previously noted, the nature and timing of potential regulatory changes in the UK and some other key markets for the Group remain uncertain.”  

The group concluded: “It is therefore difficult to predict what impact, if any, regulatory change may have on the Group this financial year and beyond.”

Quick facts: IG Group

Price: 765 GBX

LSE:IGG
Market: LSE
Market Cap: £2.83 billion
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