IG Group Releases Interim Trading Revenues
The interim results for the IG Group, which ended on November 30th and covered the last six months of operational profits have been released. This marks the first half of their 2020 Fiscal Year, with results indicating that revenues met expected estimations. Their fiscal year will complete on May 31st, 2020. That gives them another five months to recover their net trading revenue. When accounting for revenues in the second half of the 2019-20 Fiscal Year, the IG Group anticipated a loss of £250 million. Released reports confirmed that £249.9 million had been lost. This is 0.44% lower than the net trading revenue losses seen throughout the first half, which was £251 million. These increases losses were prompted by the product intervention measures from the European Securities and Markets Authority.
Declines didn’t stop at the net trading revenues. The interim reports saw operating profits drop by 11% throughout the second half of this fiscal year. Profits were listed at £100.1 million, which was measured against the operating profits earned in the first half. The IG Group earned £112.5 million in H1 2019. However, these valuations follow the anticipated performance for 2019-2020, with operational behaviours having to be altered in a stricter regulatory environment. The only benefit seen in European Markets was the continued acquisition of new clients. Over the counter, clients increased by 4%, with leveraging clients heightening by 5%.
International Performance for the IG Group
Executives with the IG Group began focusing on international markets after the ESMAs product intervention mentions. This has started to benefit the global exchange, with revenues on H2 2020 increasing to £40.4 million. Valuations increased by 40% over six months, allowing for an additional 12.2% to be earned against H1 2019. This is thanks to emerging international markets, with Japan having the most energetic performance. When it applies to growth in Japanese markets, revenues increased by 80%. Subsequently, the IG Group – International has posted an 18% increase in revenue. This will allow them to move forward with plans to enter the Chinese market.
The IG Group is now compiling strategies on how the upcoming 2020-21 Fiscal Year can be approached. They anticipate that revenue growth in the European Union will begin to grow after 24 months of continuous decline. Operating expenses are expected to increase for European exchanges, which is why the IG Group anticipates an increase of £30 million in profits.
The Chief Executive of the IG Group, June Felix, spoke on the recently released reports. He stated: “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 born out in the behaviours of our people who all share three shared values: to champion, the client, lead the way and love what we do.”
Having confidence in the upcoming fiscal year, June Felix mentioned: “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 impressive 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.
June Felix finished his positive remarks on the upcoming 2020-21 Fiscal Year by saying: “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.”