First quarter revenue for IG Group, the parent company of IG Index, increased 16% to £79m, compared to £68m in the corresponding quarter in the prior year, the company stated today in its interim management statement.
The group reported revenue of £42.3m and £11.2m from UK and Australia operations, representing a steady growth of 8.5% and 12% respectively. European revenue is up 46%, with Germany being the fastest growing market. Singapore presented also a strong increase of 52%.
IG Index also reported growth increases in US and Japan, of 20% and 14% respectively, but the group is being affected adversely by stringent leverage rules in both countries, and a negative impact is expected to continue during the year.
In terms of new account openings, IG reported similar levels to the corresponding quarter of last year. Japan saw a decline in new account openings which group attributes to poorer market conditions and to the strategy of focusing on larger, more experienced clients in Japan.
During the first quarter, IG launched its first iPhone application, and due to the positive client feedback and new feature requests, it has expanded functionality and will launch a new version in the next few days, and a multi-lingual CFD version will follow in a few months.
Although stating the group is well positioned for further growth, IG remains cautious regarding future, saying “it is difficult to predict future trends in volatility and customer reaction to changing market and economic conditions” but considers the company is well positioned for further growth.
Betfair is planning to offer clients a new platform to trade contracts for difference in the UK, representing new competition for established spread-betting providers. Tom Howkins, CEO of IG Group, dismissed the fact and said “they [Betfair] are clearly a potential competitor we are keeping an eye on, but it is maybe not the threat you would have thought “.