IG Group reports down Q1, warns on outlook for the year

… however the stock market ignores the warning, sends IG Group stock up 1.7%.

UK spreadbetting leader IG Group, which is in process of rebranding its businesses to just IG.com, reported its fiscal 2014 Q1 results as being significantly below last quarter. (IG has a May 31 year end, so Q1 was the quarter encompassing June-July-August 2013).

Overall IG Group revenues were down more than 10% from a very strong Q4 for IG, although they did come in 15% above last year’s Q1. The decline was seen in all of the companies geographic locations, although IG did make special note of Japan and Australia, even as compared to last year. Japan revenues were down 38% from last quarter.

Outlook-wise, IG management stated “the implications for the full year should be considered in the context of the weak comparative quarter and the particularly strong second half of the prior year.” Not completely sure what that means, but it does seem as if IG management is attempting to manage the market’s expectations downward, not to expect too much in the current quarter.

The stock market promptly ignored the (at least partly) negative news, sending IG shares up 1.7% in Tuesday trading. IG Group shares (LON:IGG) are now up 33% so far in 2013, and at £6.04 per share are trading just below their all-time high.

IG Group share price 2013 year-to-date. Source: Google Finance.

To see the complete IG Group press release on Q1 results click here.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.


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