Shares in Britain’s IG Group went up last week following the financial spread betting firm reporting a 9 % increase in the third quarter profit with its full-year revenue ahead of last year.
IG’s shares were up the charts 1.5 % at 639.5 pence at 1000 GMT which was among the top gainers on the FTSE 250 index which was down 0.5 % respectively. The firm which was providing online trading in shares, indexes foreign exchange, binary options and commodities said that the revenue in the last three months went up as high as 96.7 million pounds from its prior level of 88.6 million in the same period over a year ago.
The uplift came as the financial market conditions were on the better side with investors responding to a much greater quality regarding the tapering of the U.S. Federal Reserve’s money printing programme and the alleged weaker than anticipated Chinese economic data.
It was on track to deliver a full-year revenue ahead of the prior year in assumption of various conditions to remain supportive in the fourth quarter. Moreover, it reported to garnered an annual revenue of 361 million pounds in last year.
IG’s chief executive told Reuters that the company had an optimistic start during the fourth quarter with the possible break-up of the Ukraine in providing more opportunities to trade. There certainly have been several big market movements in the last 10 days which is indicative of the market’s that are keeping a close eye on the events in Crimea.
The continuation of the events and its repercussions remains to be seen but certainly the quarter was able to begin reasonably well even noting last year’s fourth quarter as remarkably strong and would make a reasonable tough comparison. Furthermore, its full-year operating costs were also expected to be lower since hiring was taking much longer than anticipated.
The firm is also positively looking forward in boosting its technology division having addressed the difficulties in finding the right staff and approach particularly developers for Google’s android mobile software division.
There was new evidence that IG’s strategy in focusing more active clients in producing a greater share of revenue was going to take effect with the revenue per client ratio will be projected to a much higher in all its markets.
In the United Kingdom, the revenue per client were on the rise to as much as 24 %, whilst the number of actively participating clients were responsible for the drop off. Sales were also ahead in most of the European markets showing the strongest growth of 19 %.
The company also made special mentioned that the market activity in Japan and Singapore were relatively much weaker due to the quite foreign exchange markets. The company made plans in launching a stock broking service in the second half of the year with a small group of clients will be testing the said service this summer before offering it to more clients by the beginning of autumn.
Finally, no update was given regarding the further geographic expansion which was the core ingredient in the group’s strategy, but was on the process of getting Swiss office up and running along the course.