IG Group forecasts revenues of £115m in Q4 FY19

Maria Nikolova

In the first three weeks of May market conditions have been more favourable and IG’s client base took opportunities to trade.

Online trading major IG Group Holdings plc (LON:IGG) has earlier today published a trading update for the fourth quarter of its FY19 financial year. 

The company noted that the low levels of volatility and market activity experienced in Q3 FY19 continued into the first two months of the final quarter of the year to end-May. In the first three weeks of May, however, market conditions have been more favourable and the Group’s client base have identified and taken opportunities to trade.

As a result, revenue in the fourth quarter is expected to be around £115 million compared with £108 million in the third quarter of the year. The full year net trading revenue is therefore projected to be around £475 million (FY18: £569 million).

The projected 17% year on year reduction in net trading revenue is blamed on the 26% reduction in OTC leveraged revenue in the ESMA region, which is barely surprising given the restrictions on CFD offering to retail clients. OTC leveraged revenue in the rest of the world was up by 2%. Both of these figures are underlying changes, adjusting for the clients who previously contracted with a UK entity who are now trading with an entity outside the ESMA region.

The Group’s total operating costs for FY19 are expected to be around £285 million (FY18: £290 million), including variable remuneration of around £28 million (FY18 £36 million).

The Group’s operating profit for FY19 is expected to be around £190 million, markedly down from £281 million registered in the preceding year.

IG expects to maintain the 43.2p per share annual dividend until the Group’s earnings allow the Company to resume progressive dividends.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales.