UK-based CFD and Forex broker, IG Group, has posted its full year results for the period ended May 31st, 2014. During the year, net trading revenue rose 2.4% to £370.4M with pre-tax profits edging 1.3% higher to £194.7M. The revenues marked a record for IG. The results translated into diluted earnings per share of 40.18p, calculating to a trailing PE of 14.3. Describing the year, IG called it a good year that was hampered by a “subdued backdrop” which occurred at the end of the reporting period. Back in May, the end of year decline in activity led IG to issue a forecast to investors that it would miss revenue expectations. However, despite the drop in client activity, IG reported that customer deposits rose 4% from last year and were at record levels.
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In operational results, IG added that they continue to make strong progress in their long- term strategy initiatives. Among examples highlighted was an upcoming expansion in Dubai and the almost completion of the process to receive a Swiss license. As reported in previous IG earnings posts, Europe has been a driver of growth for the broker, with revenues from the region rising 16% and now attributing to 22% of total revenues. The results from Europe compare to 3% growth from the UK and Ireland, 7% contraction in Australia, and a 10% decline in the Rest of World (ROW) segment.
In the news, shares of IG are down slightly more than 1% to 575p. Forex Magnates will be posting a more in-depth analysis of IG’s year and forecasts later in the day.