Financial results were published by IG Group Holdings Plc on March 19th, with this released report surrounding the third quarter in 2020. It was noted that strong performances were maintained during this period, even amidst the growing global concern surrounding the Covid-19 Pandemic. It should be noted that their fiscal year is three months before standard calendars, meaning that the IG Group, it’s May 2020. During this confusing time, client acquisitions and activity rose throughout the last three months on standard calendars. I.e. January 2020 to March 2020.
Revenue for the IG Groups third quarter is reported at £139.8 Million, indicating a substantial growth at 29%. This was compared to the 2019 fiscal years third quarter, with the published results also suggesting that this was the most robust quarterly revenue earned by the IG Group since ESMA implemented their product intervention measures. It took nearly two years for this firm to return to previous profits, showing how detrimental the PIMs were to the European Market.
Additional details in the published results noted that IG Group Holdings Plc engaged with 101+ thousand OTC Clients. This was an increase of 21% in comparison to 2019, with their respective clients also seeing increases in profits by 9%. Over-the-Counter Clients are expected to earn higher valuations amidst the coronavirus outbreak.
The Fourth Quarter Valuations
Volatility in the cryptocurrency and blockchain markets have been altered following the Covid-19 Pandemic. Representatives with the IG Group believe that their valuations for the fourth quarter could exceed £52 million above the previous estimations in 2019. That’ll be a challenging task to accomplish with competitive firms trying to gain the IG Groups market share.
The IG Group stated: “These are extraordinary times. This sustained level of volatility and revenue is unprecedented, and it is not possible to determine how long it will persist or how clients will continue to respond. Also, the actions of governments and regulators are not predictable, and the Group may face circumstances and events it has not previously anticipated. It, therefore, remains difficult to predict the level of revenue accurately in the final quarter of this financial year.”
Haydn Franklin
