IG Group delivers nine per cent revenue increase

18th Mar 2014 08:15

- Q3 revenue increases nine per cent- Supportive market conditions, strong December- Expects to meet full-year revenue targets Spread-betting and CFDs provider IG Group said third quarter revenue rose nine per cent from the same time a year earlier after what it described as an unseasonably strong December and reasonably supportive market conditions. Revenue in the third quarter rose to £96.7m with revenue in the UK, Europe and Australia well ahead of last year."Conditions were reasonably supportive throughout the quarter as the financial markets responded to several catalysts, including the clarity around tapering in the US and weaker than anticipated Chinese economic data", the group said in a company statement.UK revenue during the quarter advanced 11% to £50.9m while UK revenue per client rose 24%. However the number of active clients fell 11% after a reduction in low value clients. Australia revenue climbed 6% to £12.9m, Europe jumped 19% to £21.5m while Rest of World fell 7% to £11.4m."Assuming that financial market conditions continue to be supportive in the fourth quarter, IG remains on track to deliver revenue ahead of the prior year and in line with full year expectations for 2014," it said. Operating costs for the full-year are now expected to come in below previous guidance, with hiring taking a little longer than expected and a reduction of around £2m in the FSCS charge for the full-year. This follows the announcement that the FSCS no longer expects to raise an interim levy this year.IG said its long-term aim is to become the choice for active traders to access the financial markets. "As part of this, as laid out at the time of the half year results in January, the company is investing over the next few years in a range of initiatives to broaden the business offering, extend its technology lead, particularly in the mobile space, and to expand further geographically," it said."The group continues to make good progress on these initiatives, which it believes will generate long-term sustainable growth."CJ