Spread betting operators are fighting their way to gain more profit from existing clients at the same time looking to find new high-growth markets, despite the deteriorating growth rates in full-grown markets such as Britain and the rest of the UK. The companies who currently enjoy fast growth during the last decade included a young and increasingly popular online betting market, the IG Group. The betting group is by far the largest operator in terms of their sales enjoyed an annual growth in active customers in its central financial betting proposals of more than 30 per cent every year from 2006 to 2009 respectively.
Although, the statistics are currently at a decrease for the past year (7 per cent in the last 12 months) until this March of 2012, there was no active annual growth seen in active customers in the past ninety days of the latter period with the UK figure dropping to 1 per cent.
A study by a well known analyst reports that the outlook does not show promising signs because of the declining trend in revenue per client. That said, even if a company’s domestic growth is slowly going down it would be a presumptive fallacy that the UK market will eventually reach a plateau.
However, the study has acknowledged that the company (the only listed among the three largest operators) would need to draw their efforts on new markets to push growth that would better seek even the smallest yet better-quality clients. Many companies are foreseeing favourable gains in market shares in the UK after investing various technology and saw long-term growth break in new markets. But the opening of new markets for CFDs will result in a much harder effort than previous ones.
Many speculate a rise in revenue in the long term, with each rise in revenue per client will be partly attributable to the growing trend in smart-phone platforms. IG’s annual profit growth is likely to drop to 1 per cent within the next 6 years and could possibly turn negative which will be highly dependent on the slowing growth in the industry.