TIDMIGG
RNS Number : 7349Y
IG Group Holdings plc
09 September 2009
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9 September 2009
IG GROUP HOLDINGS PLC
Interim Management Statement
IG Group Holdings plc ("IG" or "the Group") today issues the following Interim
Management Statement. Unless otherwise stated, trends and figures highlighted
below refer to the three months ended 31 August 2009 and the corresponding
period last year.
Group revenue for the quarter was approximately GBP68m compared to GBP53m in the
corresponding quarter in the prior year, an increase of approximately 28%.
Excluding the impact of FXOnline Japan KK ("FXOnline"), organic revenue growth
was 17%.
The charge for doubtful debts in the period was less than 1% of revenue. Other
operating costs were in line with management expectations.
Financial revenue from clients dealing with the Group's London office increased
by 4% to just over GBP39m. Australian revenue was up by over 50% to GBP10m.
The Group's six newer offices in mainland Europe, Singapore and the US increased
revenue by around 80% to over GBP11m. Germany and France in particular delivered
strong growth.
FXOnline achieved revenue of GBP6m in the period. It continues to experience a
challenging competitive environment for forex and is developing its offering to
ensure that it is competitively positioned. It is making good progress on
increasing its revenue from CFDs and binary options, which are relatively new
products in Japan and where the competitive environment is more favourable.
The Group's US exchange, Nadex, has applied to its regulator, the CFTC, for the
necessary changes in designation to enable certain regulated intermediaries to
trade and clear customer orders on Nadex. Until this change of designation is
approved the Group is undertaking only limited marketing in the US.
The Group's office in Stockholm opened for business on 31 August 2009 and the
Group continues to evaluate other potential new markets for future development
while making good progress in developing its introduced and white label
businesses.
Account opening, a key lead indicator of future growth, remains strong. During
the period the Group opened over 21,000 financial accounts, an increase of 72%
on the number opened in the corresponding period of the prior year. Excluding
FXOnline, the like-for-like increase was 23%, driven principally by increases in
the rate of account opening in the UK and Australia.
The new financial year has started well, despite subdued forex and equity market
volatility. The normal seasonality impact in the northern hemisphere was
somewhat offset by clients' increased trading activity in shares during the
strong rally in equity markets over the final seven weeks of the period.
As previously noted, the Group faces more challenging comparatives in the second
quarter, as both revenue and account opening last year were boosted by the
volatility caused by the extraordinary market events of September and October.
It remains difficult to predict future trends in volatility or customer reaction
to changing market and economic conditions. Strong account opening and the
continued development of the Group's offering leave the Group well positioned
for further growth.
There will be a conference call today for analysts and investors at 8.30am (UK
time). The call can be accessed by dialling +44(0)20 7806 1961 and using
passcode 4076946. A replay of the conference call will be available for a period
of 14 days after the event by dialling +44 (0)20 7111 1244 and using passcode
4076946#.
For further information please contact:
IG Group 020 7896 0011
Tim Howkins, Chief Executive
Steve Clutton, Finance Director
Financial Dynamics 020 7269 7200
Rob Bailhache
Nick Henderson
About IG Group
IG Group Holdings plc is a world leader in financial derivatives trading, with
several operating companies offering products to a retail and professional
client base.
Expanding beyond its initial business in UK financial spread betting, IG Group
has developed significant multinational operations with offerings in foreign
exchange (forex), Contracts for Difference (CFDs) and sports betting.
IG Group continues to innovate and grow. In the past few years it has introduced
mobile dealing, new platform and charting features and a regulated
retail-focussed exchange in the US. Today, the IG Group of companies employs
over 800 staff around the globe, helping more than 72,000 clients execute over
two million transactions per month. IG Group is listed on the LSE with a market
capitalisation of approx GBP1.3bn.
IG Group Companies
IG Index
IG Index is Britain's leading financial spread-betting firm, offering prices in
a huge range of indices, currencies, commodities and options, as well as
thousands of individual shares.
IG Markets
IG Markets is an international market-maker in financial derivatives -
principally CFDs on shares and indices - as well as being a leading dealer in
margined forex.
extrabet.com
extrabet.com offers sports spread betting, sports and financial
fixed-odds betting, sports and financial binary betting, as well as a casino
from a single account.
FXOnline Japan
FXOnline is market-leading Japanese forex service. It was the
first to offer commission-free trading on forex in Japan, and in 2009 introduced
a wide range of CFDs on shares, indices and more.
Nadex
The North American Derivatives Exchange was launched in June 2009,
becoming the first regulated, retail-focussed exchange of its kind in the US.
Nadex provides a direct access platform for users to trade contracts on a wide
range of markets.
This information is provided by RNS
The company news service from the London Stock Exchange
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