Chinese and Greek chaos aids IG Group

Chinese and Greek chaos aids IG Group

Tuesday, September 22, 2015 Totally Gaming
Chief executive Tim Howkins will retire in Octover

Financial instability in China and Greece helped IG Group achieve a “strong” set of results during the three months through to August 31, 2015.

The financial spread betting company saw a 24 per cent rise in quarterly revenues to £106m (€146.9m/$164.1m) during the period, citing “a range of trading opportunities for clients” including the political turmoil in Greece and fears of a slowdown in China, which in late August triggered a plunge in global markets.

“In what is traditionally a relatively quiet period for the business, the financial markets presented a range of trading opportunities for clients, responding to news flow, including around the Greek eurozone membership debate and the current state of the Chinese economy,” an IG statement read.

“This strong start to the year positions the business well to deliver against full year expectations. However, it is impossible to predict the market conditions for the rest of the year and therefore too early to draw many conclusions.”

The results were the last full period under chief executive Tim Howkins, who will retire next month after nine years at the helm, and come after a poor FY2015 when pre-tax profits dropped 13 per cent following the Swiss National Bank's announcement that it would cease interventing in the franc exchange rate.

IG Group active client numbers were up 19 per cent, while the UK and Ireland continues to be the most active market, with revenue from the region up 23 per cent to £56.4m. Even greater gains were recorded in growing markets with Europe, Australia and the Rest of World operations up 54 per cent to £13.9m.

“IG has a clear strategy and will continue to execute against its priorities, which this financial year include rolling out the stockbroking offering to additional countries, launching ETF portfolios, delivering further improvements in the client conversion process and moving the mobile interface forward,” IG said.

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