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IG Group shares up amid late improvement in trading conditions

By Josh White

Date: Wednesday 22 May 2019

IG Group shares up amid late improvement in trading conditions

(Sharecast News) - IG Group Holdings reported on Wednesday that the \"low levels\" of volatility and market activity it experienced in the third quarter had continued into the first two months of its final quarter, as it updated the market on its trading ahead of the end of its financial year.
The FTSE 250 financial trading provider said that in the first three weeks of May market conditions had been more favourable, with the group\'s \"high quality and loyal\" client base identifying and taking opportunities to trade.

As a result, revenue in the fourth quarter ending 31 May was expected to be around £115m, compared with £108m in the third quarter of the year.

The full-year net trading revenue was projected to be around £475m, down from £569m year-on-year.

IG said the projected 17% year-on-year reduction in net trading revenue had been driven by the 26% reduction in over-the-counter (OTC) leveraged revenue in the ESMA jurisdiction, with OTC leveraged revenue in the rest of the world up by 2%.

\"Both of these figures are underlying changes, adjusting for the clients who previously contracted with a UK entity who are now trading with an entity outside the ESMA region,\" the IG board explained in its statement.

The group\'s total operating costs for FY19 were expected to be around £285m, down from £290m, which would include variable remuneration of around £28m, falling from £36m.

It said its operating profit for the 2019 financial year was expected to be around £190m, down from £281m.

\"The goard reiterates that the company expects to maintain the 43.2p per share annual dividend until the group\'s earnings allow the company to resume progressive dividends,\" IG added.

As at 0907 BST, shares in IG Group were ahead 9.75% at 521.11p.

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