IG Group Holdings plc First Quarter Revenue Update (3606R)

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RNS Number : 3606R

IG Group Holdings plc

21 September 2017

21 September 2017

IG GROUP HOLDINGS PLC

First Quarter Revenue Update

IG Group ("IG", "the Company"), a global leader in online trading, today issues the following update on its revenue for the three months to 31 August 2017, the first quarter of its 2018 financial year. The trends and figures highlighted below refer to this period and the corresponding period last year.

IG delivered a record revenue quarter, in relatively quiet financial markets. At GBP135.2 million, revenue was 21% ahead of the first quarter of the prior year (GBP111.4 million). The prior year period was impacted by proactive management actions to protect clients from the extreme volatility at the time of the UK's EU Referendum.

Revenue and key performance indicators by reporting segment are as follows:

 
 Reporting Segment                                  % Change                       % Change     Revenue 
                                 Revenue (GBPm)                 Clients ('000s)                per client 
-----------------------------                      ---------                      ---------  ------------ 
                                Q1 FY18   Q1 FY17              Q1 FY18   Q1 FY17 
-----------------------------  --------  --------  ---------  --------  --------  ---------  ------------ 
 UK                              58.8      53.0       11%       39.2      43.4      (10%)         23% 
 EMEA                            39.0      29.8       31%       30.2      28.7        5%          24% 
 APAC                            33.1      25.2       32%       25.2      25.6       (2%)         34% 
 Leveraged OTC                   130.9     108.0      21%       94.6      97.7       (3%)         25% 
-----------------------------  --------  --------  ---------  --------  --------  --------- 
 US                               3.4       3.0       15%       10.3       9.0       15%         (1%) 
 Share Dealing & Investments      0.9       0.5       86%       24.2      10.3       135%        (21%) 
 Multi product clients                                          (4.1)     (2.5)      68% 
                                                                                             ------------ 
 Group                           135.2     111.4      21%       124.9     114.5       9%          11% 
-----------------------------  --------  --------  ---------  --------  --------  ---------  ------------ 
 The financial tables above contain numbers which have been rounded 
  whilst all year-on-year percentages are calculated off underlying 
  unrounded numbers 
 

Client numbers in the UK were, as expected, lower than in the equivalent quarter in the prior year due to the particularly strong new client inflow in the prior period reflecting the short-term trading opportunities created by the EU referendum in June 2016.

The retail leveraged trading industry is under scrutiny by regulators globally, with particular emphasis in the UK and Europe. IG will continue to lead the way in the industry with respect to how it markets its services, how it deals with clients, and through the products and levels of client service it offers. IG believes in doing the right thing, rather than simply complying with minimum regulatory requirements.

Although none of the recently announced regulatory changes have adversely impacted the business to date, as previously noted, the nature and timing of potential regulatory changes in the UK and some other key markets for the Group remain uncertain. It is therefore difficult to predict what impact, if any, regulatory change may have on the Group this financial year and beyond.

Paul Mainwaring, Chief Financial Officer and Kieran McKinney will hold a conference call for analysts and investors at 8.30am (UK time) today. The call can be accessed by dialling [phone]. The audio recording of the conference call will be archived for access at www.iggroup.com/investors, along with a full transcript.

Please note that Kieran McKinney will be leaving the Group. We would like to express our sincere thanks to Kieran for his significant contribution to the Group over the past five years, both in leading our external communications activities and as a member of the Executive Committee. Liz Scorer will become the primary initial point of contact for investors and analysts with effect from the end of September.

The next planned performance announcement from IG is a short pre-close trading update, currently scheduled for 5 December 2017.

For further information, please contact:

IG Group

   Liz Scorer                                             020 7573 0026 / 0727 

[e-mail]

FTI Consulting

   Neil Doyle / Ed Berry                         020 3727 1141 / 1046 

About IG

IG empowers informed, decisive, adventurous people to access opportunities in over 15,000 financial markets. With a strong focus on innovation and technology, the company puts client needs at the heart of everything it does.

IG's vision is to be a global leader in retail trading and investments. Established in 1974 as the world's first financial spread betting firm, it continued leading the way by launching the world's first online and iPhone trading services.

IG is now an award-winning, multi-platform trading company, the world's No.1 provider of CFDs* and a global leader in forex. It provides leveraged services with the option of limited-risk guarantees, and offers an execution-only share dealing service in the UK, Australia, Germany, France, Ireland, Austria and the Netherlands. IG has recently launched a range of affordable, fully managed investment portfolios, to provide a comprehensive offering to investors and active traders.

It is a member of the FTSE 250, with offices across Europe, including a Swiss bank, Africa, Asia-Pacific, the Middle East and the US, where it offers on-exchange limited risk derivatives via the Nadex brand.

*Based on revenue excluding FX (from published financial statements, October 2016)

(1)References in this statement to "revenue" refer to net trading revenue, which is trading revenue excluding interest on segregated client funds and is net of introducing broker commissions.

(2) References in this statement to active clients are to the number of clients trading during the period referred to and references to average revenue per client are to revenue for the period referred to divided by the number of active clients in that period.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 21, 2017 02:00 ET (06:00 GMT)