TIDMIGG
RNS Number : 5172I
IG Group Holdings plc
22 March 2018
22 March 2018
LEI No: 2138003A5Q1M7ANOUD76
IG GROUP HOLDINGS PLC
Third Quarter Revenue Update
IG Group ("IG", "the Company"), a global leader in online
trading, today issues the following Revenue Update for the three
months to 28 February 2018, the third quarter of its FY18 financial
year. The trends and figures highlighted below refer to this period
and the corresponding period last year.
IG has delivered a record revenue quarter. Net trading revenue
of GBP152.9m was 30% higher than in the same period in the prior
year, and was 13% higher than the Company's previous record revenue
quarter of GBP135.2m in Q1 FY18.
Revenue and other key performance indicators by reporting
segment are as follows:
Reporting Segment(1) % Change % Change Change
in Revenue
Revenue (GBPm)(2) Clients ('000s)(3) per client
------------------------------ --------- --------- ------------
Q3 FY18 Q3 FY17 Q3 FY18 Q3 FY17
------------------------------ --------- --------- --------- ---------- --------- --------- ------------
UK 69.2 51.1 35% 40.8 39.6 3% 31%
EMEA 41.9 33.5 25% 31.3 30.8 2% 23%
APAC 36.4 28.2 29% 27.3 25.0 9% 18%
OTC Leveraged 147.5 112.8 31% 99.5 95.4 4% 25%
------------------------------ --------- --------- --------- ---------- --------- ---------
US 4.3 3.9 9% 10.5 10.3 1% 8%
Share Dealing & Investments 1.1 0.6 77% 33.7 16.4 105% (14%)
Multi product clients (5.2) (3.3) 58%
------------------------------ --------- --------- --------- ---------- --------- --------- ------------
Group 152.9 117.4 30% 138.5 118.9 16% 12%
------------------------------ --------- --------- --------- ---------- --------- --------- ------------
Revenue in Q3 benefited from a high level of client trading activity,
and from an increase in the number of active clients. OTC leveraged
revenue per client of GBP1,482 in the quarter was 25% higher than
in the prior year. The number of unique OTC leveraged clients active
in the period of 99,500 was 4% higher than in the prior year, including
12,500 new OTC leveraged clients who traded for the first time in
the period. Client trading in cryptocurrencies accounted for 11% of
revenue in the period (Q3 FY17: 1%), however, cryptocurrency trading
by clients has slowed markedly since the end of January.
Year to date net trading revenue of GBP421.3m is 16% higher than in
the same period in the prior year. Client trading in cryptocurrencies
accounted for 7% of year to date revenue (Q3 FY17 YTD: 0.5%).
Revenue and other key performance indicators by reporting segment
for the year to date are as follows:
Reporting % Change % Change Change
Segment(1) in
Revenue
per
Revenue (GBPm)(2) Clients ('000s)(3) client
------------- --------- --------- --------
Q3 YTD Q3 YTD Q3 YTD Q3 YTD
FY18 FY17 FY18 FY17
------------- --------- --------- --------- -------- --------- --------- --------
UK 185.8 166.1 12% 55.4 59.2 (6%) 20%
EMEA 118.6 100.6 18% 42.1 41.3 2% 16%
APAC 102.4 83.7 22% 35.3 33.9 4% 17%
OTC
Leveraged 406.8 350.5 16% 132.7 134.4 (1%) 17%
------------- --------- --------- --------- -------- --------- ---------
US 11.6 10.2 14% 18.8 17.9 5% 8%
Share
Dealing &
Investments 2.9 1.6 82% 33.7 16.4 105% (11%)
Multi
product
clients (6.3) (4.1) 53%
--------
Group 421.3 362.3 16% 178.9 164.5 9% 7%
------------- --------- --------- --------- -------- --------- --------- --------
Revenue growth has been strong across all regions and products.
The 16% growth in OTC leveraged revenue compared with prior year
reflects higher revenue per client, driven by an increase in client
trading activity, combined with higher hedging efficiency.
The business has delivered a strong performance in each of the
first three quarters of the financial year. It remains difficult,
however, to predict the level of revenue in the last quarter of the
year, which depends on the level of trading opportunities available
to our clients and on the Company's hedging efficiency.
Following its call for evidence in the early part of the year,
it is expected that ESMA will soon publish measures to restrict the
marketing, distribution or sale to retail clients of CFDs. IG
continues to believe that any financial impact from the
implementation of such measures is unlikely to be significant in
FY18. It remains difficult to predict what impact regulatory change
may have on the business in subsequent financial years. The Company
has made good progress with the actions being taken to mitigate the
potential financial impact of regulatory change, and to position
the business so that it will continue to deliver for all its
stakeholders under a more restrictive regulatory environment.
Today there will be a conference call for analysts and investors
at 8.30am (UK time). The call can be accessed by dialling +44 20
3936 2999 and entering access code 881169 when requested. The audio
recording of the conference call will be archived for access at
www.iggroup.com/investors, along with a full transcript.
The Group is holding a Capital Markets Day on the morning of the
23(rd) May 2018, any attendance requests should be sent to
investors@ig.com. The next planned performance announcement from IG
is a pre-close trading update, currently scheduled for 7(th) June
2018.
For further information, please contact:
IG Group FTI Consulting
Liz Scorer Neil Doyle / Ed Berry
020 7573 0727 020 3727 1141 / 1046
investors@iggroup.com
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public
domain.
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
derivatives 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, February 2018)
(1) The financial tables contain numbers which have been rounded
whilst all year-on-year percentages are calculated off underlying
unrounded numbers (2) 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.
(3) 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
END
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