Markets

IG Group unveils increased revenue but says outlook remains uncertain

Spreadbetting firm IG Group said it expects to report an increase in revenue in the first half, but warned that predictions about the future are difficult to make due to planned regulatory changes.

IG said it followed a strong first quarter with a good performance in the second, and net trading revenue in the first half is expected to be around nine per cent higher than in the same period a year ago.

Meanwhile, operating costs excluding variable remuneration in the first half of 2018 are expected to be around seven per cent lower than last year, "primarily reflecting a lower level of advertising and marketing spend".

IG maintained the guidance given in July that operating costs excluding variable remuneration for the full year are expected to remain at a similar level to 2017.

"As previously noted, the nature and timing of potential regulatory changes in the UK and some other key markets for the group remain uncertain," IG said in today's trading update.

"The company continues to implement measures to differentiate itself further within the OTC leveraged derivatives industry and to protect the business from regulatory change. It remains difficult, however, to predict what impact regulatory change may have on the group this financial year and beyond."

IG's share price fell off a cliff last year when the financial watchdog announced it would be tightening rules around contract for difference products. This morning, however, the stock was up more than four per cent.

Original Article

Leave a Reply