IG Group Reports 28% YoY Revenue Growth9th September 2009 11:07 am GMT
IG Group Holdings plc has reported revenues of £68 million for the three month period ended August 31st, a 28% improvement on the same period last year as a result of strong revenue growth in Australia, Germany and France.
Revenue from the group's London base improved by 4% to over £39 million while Australian revenues jumped by over 50% to £10 million.
IG Group's operations in mainland Europe, Singapore and the US also reported strong growth with revenues increasing 80% year-on-year to over £11 million, with particularly strong performances in Germany and France.
The group said that it had also managed to keep charges for doubtful debts in the period to less than 1% of revenue, having been impacted by a charge of £12 million in the last quarter of 2009, and operating expenses in line with management expectations.
The group's Japanese facing FXOnline business achieved revenues of £6 million for the period amid a challenging competitive environment, while U.S. marketing activities for Nadex were kept at a minimum as the company awaits regulatory approval for changes that will enable certain intermediaries to trade and clear customer orders on Nadex.
The company also said that it opened over 21,000 new financial accounts in the period, a 72% increase year-on-year, driven principally by FXOnline signups. Excluding FXOnline, the like-for-like increase in new accounts amounted to 23%, primarily within the UK and Australia.
IG's products and services are offered through igindex.com, igmarkets.com, nadex.com, extrabet.com and fxonline.co.jp.
Shares in IG Group Holdings plc (Co. Profile) (LSE:IGG) are currently trading down 6.49% following the announcement at 348.70 pence per share.