IG Group expects decline in revenues in first half of 2020

IG Group office

UK online trading leader IG Group Holdings plc (LON:IGG) has issued its scheduled update on its revenue for the first half of its FY20 financial year (H1 FY20) ahead of entering its close period.

Net trading revenue in H1 FY20 is expected to be around £250 million (prior year: £251 million). The prior year period benefitted from two months of trading prior to the ESMA product intervention measures coming into effect.

Core markets revenue is expected to be around £210 million, 6% lower YoY. The core business served, on average, 78,500 OTC leveraged clients per quarter in its core markets in H1 FY20, 4% higher than the quarterly average in Q2-Q4 FY19. The reduction in revenue in these markets is due to ESMA measures and the lower level of trading by ESMA region Professional clients in Q2 FY20 compared with a strong Q2 FY19.

Revenue in the businesses identified as significant opportunities is expected to be around £40 million in H1 FY20, £12 million higher YoY, driven by continued strong performance in Japan and in Emerging Markets.

In mid-October IG Europe, the Group’s client-facing subsidiary in Germany, started offering its clients turbo24s, which are traded on the Group’s multi-lateral trading facility, Spectrum. The initial uptake has been promising and around 700 clients have traded turbo24s since launch.

LeapRate reminds that IG Group has already released significant drops in profits this year. IG is scheduled to announce its H1 FY20 financial results on 21 January 2020.

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