IG Group Posts £249.9m trading revenues in H1 of Fiscal 2020

IG Group has published its interim results for the six months ended 30 November 2019 this Tuesday, which is the first half of the global online trading provider’s fiscal 2020, with net trading revenue falling within the company’s estimations.

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. In December of last year, IG Group published its trading update for the first half of fiscal 2020.

In this trading update, the trading provider said that it expected net trading revenue to fall around the £250 million mark. This forecast was right on the money, as the interim results show that net trading revenue was £249.9 million.

This result is slightly lower than the £251.0 million net trading revenue recorded in the first half of fiscal 2019 (0.44 percent lower). According to the report released by the company, this is because H1 of FY2019 included two months of trading prior to the implementation of ESMA’s product intervention measures.

Operating profit came in at £100.1 million during the first half of fiscal 2020. This represents a decline of 11 percent when measured against the £112.5 million operating profit achieved in the first half of fiscal 2019.

Taking a look at the trading provider’s core markets, IG Group highlighted that performance was in line with the company’s plan in a more restrictive regulatory environment.

Namely, the firm managed to post continued growth in its client base. For the region impacted by ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term’s measures, over the counter (OTC) leveraged active client numbers increased by four percent. Other core markets OTC leveraged active client numbers also achieved a growth of five percent.

IG Group achieves solid overseas performance

For the company’s businesses, which it has identified as having significant opportunities, revenue was £40.4 million in the first half. This is £12.2 million higher than in the same period of the prior year, driven by continued strong performance in Japan and in Emerging Markets.

In particular, Japan delivered revenue growth of more than 80 percent year-on-year, and its institutional business also posted annual revenue growth of 18 percent. The company’s plans for Greater China are also “progressing well,” the report said.

Positive 2020 outlook

Looking to the future, the Group expects to return to revenue growth in fiscal 2020, with total operating expenses, excluding variable remuneration, to be around £30 million higher than FY19.

Commenting on the results, June Felix, Chief Executive, said in the report: “At IG, we have one clear vision – to provide the world’s best trading experience. In working to that vision, we lead our industry by focusing on our clients and making them central to everything we do. This client-centric approach is borne out in the behaviours of our people who all share three common values: to champion the client, lead the way and love what we do."

“We are now six months into the delivery of our multi-year strategy and are on track to deliver on the medium-term growth targets we have set ourselves. Early indications are very encouraging with continued growth in the client base in our Core Markets, and convincing progress in the areas identified as Significant Opportunities. I am very much looking forward to continuing the delivery of our strategy, and also to welcoming Mike McTighe as Chairman of IG Group in February.

“I believe that IG is in an excellent position to exploit our scale, skills and technological capability, to pivot into new product lines, to expand our geographic reach and to serve new client segments, as we continue to focus on delivering sustainable growth and attractive shareholder returns.”