Market volatility helps IG Group to big revenue rise

Market volatility helps IG Group to big revenue rise

Tuesday, January 19, 2016 Totally Gaming

Peter Hetherington, the new chief executive of IG Group, announced increased revenue but a drop in pre-tax profits as the company’s first results since he took over were revealed.

The spread betting and financials operator said that revenue for the six months through to November 30, 2015 was at £214.8m (€282.7m/$307.3m), up 8.8 per cent compared to the same period in the previous year. The growth came during a period of volatility in world markets, from Black Friday in China in August through to the Greek debt crisis and falling commodity prices such as oil.

IG noted that an increase in operating costs as a result of its ongoing investment in growth initiatives, in addition to the “combination of higher betting duty and lower interest on client funds, resulted in a small reduction in profit before tax” which fell by 2.8 per cent to £98.6m in comparison to £101.4m in 2015.

Hetherington, who replaced the retiring Tim Howkins in December and was previously chief operating officer, said: "The business continues to perform well and I am pleased with the progress on the strategic initiatives we are investing in to underpin the future growth of the company.

“Building on our strong operational and risk management capabilities, we are driving continuous improvement and value from the current business.

"At the same time, we are laying foundations for broadening the IG offering, to take advantage of supportive macro trends in financial behaviour, by leveraging the market-leading platform we have built.”
 

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