IG Group Holdings (IGG) Gains As Market Volatility Reigns

IG Group Holdings reported solid and consistent financial results for the six months ended November 30, 2015. Its performance shows that traders are making money amid the market volatility. The stock price of the  online trading company rose 1.34% to 753.50 pence in London on Tuesday, January 19.

IG Group financial results

IG Group Holdings said its net trading revenue was £214.8 million for the first half of its fiscal year 2016, an 8.8% increase from the £197.4 million recorded in the same period in 2015.

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The overall revenue performance of the U-K-based online trading company was consistent with its first two-quarters of 2015, each marked by one particularly strong month, according to its CEO Peter Hetherington.

He added that the company experienced heightened volatility in August and September as the global financial markets suffered significant declines due to concerns regarding the slowing economy in emerging markets.

He believed “these market conditions present clients with an increased number of trading opportunities.”

The online company said its profit before taxation was £98.6 million, down by 2.8% from £101.4 million in the first half of fiscal 2015. Its profit after taxation was £78.6 million, down 2.4% from £78.6 million.

IG Group Holdings’ diluted earnings per share were 20.91 pence, lower than its earnings of 21.44 pence in the same period a year ago. The online trading company said its find generated from operations were £87.2 million.

According to the online trading company, its new client numbers defined as first trades increased 35% with a stable run rate. IG Group Holdings said its stockbroking client numbers are growing steadily while the performance of its offices in Dubai and Switzerland are in line with expectations.

IG Group is now a global leader in online trading

In a statement, Mr. Hetherington said, “I am delighted to present my first set of half-year results as Chief Executive of IG. 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.”

Mr. Hetherington also noted that IG Group Holdings is now a global leader in online trading with more than 1,400 employees in 20 countries. Previously, it was only a small phone-based trading company with around 25 employees in the United Kingdom.

Furthermore, he expressed excitement about the future of the IG Group Holdings. He said, “Building on our strong operational and risk management capabilities, we are driving continuous improvement and value for 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.”

On the other hand, IG Group Holdings Chairman Andry Green said the Board of Directors was pleased with the appointment of Mr. Hetherington as CEO after a thorough selection process. He added that the Board appointed an Interim CFO and the search process for a permanent CEO is ongoing.

“Peter and his management team have begun to sharpen the execution of the Company’s strategy to ensure we take advantage of positive trends and deliver the next phase of growth,” said Mr. Green.

IGG Group