IG Group Continues to See Impressive Performance Due to COVID-19

Revenue for the first 36 trading days of Q4 2020 is estimated to be around £173 million.

IG Group Holdings plc has published a trading update this Friday for the final quarter of its 2020 fiscal year in which the company has revealed that it continues to benefit from the high levels of volatility in the financial markets caused by the coronavirus pandemic.

Since the last week of February, the trading markets have experienced heightened levels of volatility, which has persisted through March and into April. Because of this, the UK-based company said that it continues to see high levels of client trading activity and the number of new active clients.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

IG Group’s 2020 fiscal year ends on the 31st of May 2020, therefore, the fourth quarter spans from the beginning of March to the end of May this year. Already, revenue for the first 36 trading days out of the total 61 in Q4 of 2020 is estimated to be at around £173 million.

This is quite a solid figure, as revenue for the whole of the third quarter of its 2020 fiscal year was £139.8 million and revenue for the first half of fiscal 2020 was £249.9 million. 

Suggested articles

Have You Future Proofed Your Brokerage?Go to article >>

Because of the unprecedented sustained level of financial market volatility and revenue, IG has outlined it is impossible to know how long it will last for and how its clients will continue to respond, therefore, it the company has said it can’t accurately predict what revenue for the Q4 of FY2020 will be.

Commenting on the company’s performance, IG CEO, June Felix, said in the update: “During such a prolonged period of volatility, we’ve seen high volumes of clients choosing to trade markets with IG, reflecting our business resilience, our robust systems and our commitment to delivering the best possible trading experience.”

IG Group sees a wave of new clients

In the first 36 trading days of the final quarter, IG Group has attracted more than 22,500 new over the counter (OTC) leveraged clients who have traded with the company for the first time. This is in comparison to the 36,000 who joined in the first three quarters of the fiscal year.

Furthermore, the online trading company has updated its guidance for operating expense, with the Group now expecting this to increase by around £40 million in FY20, to £300 million. Previously, the firm thought it would increase by around £30 million.

In addition to providing the trading update, IG Group announced that it has committed £5 million from its 2020 fiscal year profit before tax to the IG Brighter Future Fund. The purpose of this fund, as outlined by the trading provider, is to improve educational opportunities for underprivileged young people within the communities the Group operates in across the world. According to the statement, many of whom have been impacted even more so by COVID-19.

Got a news tip? Let Us Know