UPDATE: IG Group Profit Up 25% On Spring Volatility Spike

9th Jun 2010 08:20

(Adds detail, share price and analysts' expectations.) By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Spread betting firm IG Group Holdings PLC (IGG.LN) Wednesday said fiscal year profit will be 25% higher on the year following a spike in market volatility during the spring, when traders were grappling with the consequences of an unfolding debt crisis in Europe. The company said it is difficult to predict future trends in volatility but new customers are opening accounts and it is well-positioned for future growth. IG Group said it expects to report an adjusted pretax profit of roughly GBP157 million for the year to May 31, on revenue 16% higher at GBP298 million. Adjustments include a GBP5 million cost associated moving its London office, IG said. Analysts forecast fiscal-year pretax profit of between GBP126 million and GBP153 million on revenue of between GBP283.2 million and GBP298.4 million, according to FactSet. At 0707 GMT, shares in IG were 25 pence or 6.4% higher at 417 pence, outperforming a 0.7% higher FTSE 250 index. Revenue surged 24% on year during the final quarter of the fiscal year, aided by 21,500 new accounts. U.K. revenue increased 17%, while final quarter revenue from IG's Australian unit rose 65%, IG said. It said its U.S. exchange business, Nadex, is in talks with brokers about offering clients access and efforts to connect third party trading platforms to Nadex are at an early stage. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] Order free Annual Report for IG Group Holdings PLC Visit http://djnweurope.ar.wilink.com/?ticker=GB00B06QFB75 or call +44 (0)208 391 6028 (END) Dow Jones Newswires June 09, 2010 03:20 ET (07:20 GMT)