IG Group Reports Revenues Rising 8% in First Half of Fiscal 2015

The UK spread betting brokerage has announced that its revenues have grown to $297.7 million and profits rose by 2.8%,

IG Group logo newIG Group (LON:IGG) has just released its earnings for the first six months of fiscal 2015, ending on November 30th, 2014. The company reported $297.7 million (£197.4 million) of trading revenues despite the subdued results during the first quarter, which is 8% higher than in the same period of fiscal 2014.

Profits at IG Group (LON:IGG) rose 2.8% from a year ago, to about $153 million (£101.4 million), with diluted earnings per share totaling 21.44 pence, which is 5.4% higher. The company announced an interim dividend of 8.45 pence a share, which is 30% of the 2014 full year dividend.

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The company announced that it remained on track to obtain an operational license in Dubai, while the company’s CEO Tim Howkins commented, “We made good progress with our ongoing investment in strategic initiatives designed to drive future growth, including the launch of stockbroking in the UK and the opening of a new office in Switzerland.”

IG Group (LON:IGG) generated $131.7 million (£87.4 million) of own funds from operations throughout the period, which have grown 10.5%.

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Details on Swissie Turmoil

In the aftermath of the Swiss franc decoupling from the euro, the IG Group reported a loss totaling about $45 million (£30 million). Some reports from clients of the company suggest that the firm is acting to recover negative balances from its clients.

Elaborating on the recent Swiss franc turmoil, the IG Group revealed that market exposure has cost the company $18 million (£12 million) and client credit $27 million (£18 million) exposure.

Mr. Howkins explained, “While this was due to an unprecedented and unforeseeable degree of movement in a major global currency and only a few hundred clients were affected, we will seek to learn lessons from this incident which we can incorporate into our risk management approach going forward.”

Shares of IG Group are currently trading 0.8% higher on the London Stock Exchange, reflecting a market which has already priced in the positive growth numbers from today’s interim results.

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