IG Group shares rise as market volatility drives up revenue
Shares in IG Group rose almost seven per cent this morning after the trading platform reported a surge in first-quarter revenue due to high levels of activity during the coronavirus crisis.
IG reported revenue of £209m in the three months to the end of August, up 62 per cent on the same period last year.
It came as market volatility caused by the Covid-19 outbreak helped drive up trading volumes, while the company’s client base jumped 50 per cent to 201,500.
IG, which offers access to trade over 17,000 financial markets, said revenue from core markets was £170.8m — up 56 per cent year on year — with particularly strong performance for its retail client base.
The company’s so-called significant opportunities portfolio soared 94 per cent to £38.3m.
“I am excited by the outstanding performance we delivered in the first quarter as we enter the second year of our three-year growth strategy,” said chief executive June Felix.
“This was a great start to the year, and although there was some moderation from the exceptional performance in the fourth quarter, our first quarter results demonstrate IG’s continued strength across the core markets, while also highlighting the growth potential in the significant opportunities.”
IG and rivals such as Plus500 and CMC Markets have cashed in on volatility in financial markets as a global sell-off at the outbreak of coronavirus and subsequent recovery have driven up trading volumes.
Earlier this week Plus500 reported strong revenue and client growth in the second half of the year to date.