IG Group Expects £250m Net Trading Revenue in H1 Fiscal 2020

The company has posted its trading update for the first half of fiscal 2020.

Online trading provider IG Group has published an update on its revenue for the first half of its 2020 fiscal year this Thursday, ahead of entering its close period.

IG Group’s 2020 fiscal year ends on May 31, 2020. Therefore, the first half of the fiscal year is from June 1, 2019, until November 30, 2019.

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During the six-month period, IG Group expects that net trading revenue is around £250 million. This is slightly lower than the £251 million net trading revenue recorded in the same period of the previous year.

However, it is worth keeping in mind that the prior-year period had two months of trading that were not subject to the product intervention measures implemented by the European Securities and Markets Authority (ESMA) in August of 2018.

In the Group’s core markets, revenue for the first half of fiscal 2020 is expected to be approximately £210 million. This is six percent lower year-on-year.

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Since ESMA’s measures came into effect, IG has been building the size and quality of its active client base in its core markets, which is the firm’s key driver of revenue growth in the medium term.

On average, IG’s core business served an average of 78,500 over the counter (OTC) leveraged clients per quarter, in H1 of fiscal 2020. This represents a growth of four percent compared to the quarterly average in Q2-Q4 FY19.

“The reduction in revenue in these markets is due to the prior year period including two months of trading prior to the implementation of the ESMA measures, and the lower level of trading by ESMA region Professional clients in Q2 FY20 compared with a strong Q2 FY19,” the statement said.

Japan and emerging markets drive revenues for IG

For the company’s businesses, which it has identified as having significant opportunities, revenue is expected to be around £40 million in the first half. This is £12 million higher than in the same period of the prior year, driven by continued strong performance in Japan and in Emerging Markets. 

The trading update published today follows on from the IG Group posting a solid first quarter for fiscal 2020. As Finance Magnates reported, revenue for the Group was £129.1 million. This is in line with the previous year’s result of £128.9 million.

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