Leading UK online spreadbetting and financial trading firm IG Group Holdings plc (LON:IGG) has just provided a trading update regarding the third quarter of its fiscal year 2016, with revenues hitting a new high, on the back of financial markets volatility.
Revenues for the three months to 29 February 2016, the third quarter of IG’s 2016 financial year, hit £122.0 million, 18% ahead of the same period in the prior year.
Importantly, the company registered a growth in revenues in all regions, with the year-on-year rise at 24% in Europe and at 13% in Ireland and the UK.
The robust result for the third quarter of FY 2016 follows a set of solid metrics for the second quarter and the first half of the fiscal year, when IG posted revenues of £214.8 million.
Active client numbers and client first trades, the best proxy for new clients, also hit new highs for the Group, thanks to both a conducive market backdrop and ongoing improvements to its online marketing capability. Active client numbers were ahead of the same quarter in the prior year by 11% and ahead of the second quarter of this year by almost 10%. Client first trades were 26% ahead of the prior year period and 17% ahead of the second quarter of this year.
IG said it entered the fourth quarter in a strong position, with good execution across the business and healthy new client inflow.
In France, regulatory discussions continue around possible restrictions on direct marketing of OTC derivative products. Year-to-date, less than 5% of IG’s new clients have been resident in France. IG recruits clients in France via many channels, some of which would likely be impacted by any direct marketing restrictions. IG expects the situation to be clarified later this year.
Looking beyond this year, IG has a very clear strategy to deliver future growth in revenue and earnings and continues to make good progress on initiatives which support it.
You can view the official announcement from IG Group by clicking here.