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

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance