IG Releases Results for Half Year To November 2019: ESMA Client numbers up 4 per cent

January 21, 2020 - IG Group Holdings (LON: IGG) has today released its results for the six months ended 30 November 2019 ("H1 FY20").

The company said that the implementation of the Group's strategy is progressing as planned, and reiterates its medium-term financial targets of:

 ○ Revenue growth in its Core Markets at around 3-5% per annum over the medium term; and

 ○ An increase in revenue from its Significant Opportunities markets of £100 million, to around £160 million in FY22.

Core Markets performing in line with plan in a more restrictive regulatory environment with a continued growth in the client base, with ESMA region active client numbers up 4%, and Other Core Markets OTC leveraged active client numbers up 5%. The company states that actions are progressing as planned to enable successful navigation of the impact of regulatory change in Australia and across the Group's Core Markets.

The Group's portfolio of Significant Opportunities delivered revenue of £40.4 million in H1 FY20, £12.2 million higher than H1 FY19:

 ○ Japan delivered revenue growth of over 80%;

 ○ Active client numbers in Emerging Markets grew close to 40%;

 ○ Revenue growth of 18% in the Institutional business;

 ○ IG US OTC FX business delivering steady growth;

 ○ Marketing launch of the Group's Multi-lateral Trading Facility (MTF), Spectrum, in October;

 ○ Plans in Greater China are progressing well.

Financial Summary

 ○ Net trading revenue £249.9 million (H1 FY19: £251.0 million). H1 FY19 included two months of trading prior to the implementation of the ESMA product intervention measures.

 ○ Total operating expenses £136.3 million, reflecting investment in the Group's strategic initiatives, in line with guidance (H1 FY19: £122.1 million).

 ○ Operating profit £100.1 million (H1 FY19: £112.5 million).