IG Group forecasts net trading revenue of £250m in H1 FY20

Maria Nikolova

Net trading revenue in H1 FY20 is expected to be around £250 million, compared with £251 million in the equivalent period of the prior year.

Electronic trading major IG Group Holdings plc (LON:IGG) has earlier today provided an update on its revenue for the first half of its FY20 financial year ahead of entering its close period.

The company expects net trading revenue in H1 FY20 to be approximately £250 million, compared with £251 million in the equivalent period of the prior year. The brokerage notes that H1 FY19 benefitted from two months of trading prior to the ESMA product intervention measures coming into effect.

Revenue in the Group’s core markets in H1 FY20 is expected to be around £210 million, 6% lower than in the same period of the prior year. IG notes that it has continued to build the size and quality of the active client base in its core markets, which is the key driver of revenue growth in the medium term.

The core business served, on average, 78,500 OTC leveraged clients per quarter in its core markets in H1 FY20, 4% higher than the quarterly average in Q2-Q4 FY19. The reduction in revenue in these markets, the company explains, reflects the prior year period including two months of trading prior to the implementation of the ESMA measures, and the lower level of trading by ESMA region Professional clients in Q2 FY20 compared with a strong Q2 FY19.

Revenue in the businesses identified as significant opportunities is expected to be around £40 million in H1 FY20, £12 million higher than in the same period of the prior year, driven by continued strong performance in Japan and in Emerging Markets.

In mid-October IG Europe, the Group’s client-facing subsidiary in Germany, started offering its clients turbo24s, which are traded on the Group’s multi-lateral trading facility, Spectrum. IG says the initial uptake has been promising and around 700 clients have traded turbo24s since the product’s launch.

IG is scheduled to announce its H1 FY20 financial results on January 21, 2020.

In terms of recent developments concerning IG’s US business, let’s note the massive management changes which FinanceFeeds has reported. You can read the full report here.

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