IG Regulatory News (IGG)

5 December 2019

LEI No: 2138003A5Q1M7ANOUD76

IG GROUP HOLDINGS PLCPre Close Trading Update

IG Group Holdings plc ("IG", "the Group", "the Company"), a global leader in online trading, today issues its scheduled update on its revenue for the first half of its FY20 financial year ("H1 FY20") ahead of entering its close period.

Net trading revenue in H1 FY20 is expected to be around £250 million, compared with £251 million in the same period of the prior year. The prior year period benefitted from two months of trading prior to the ESMA product intervention measures coming into effect. 

Revenue in the Group's core markets in H1 FY20 is expected to be around £210 million, 6% lower than in the same period of the prior year. The Group has continued to build the size and quality of the active client base in its core markets, which is the key driver of revenue growth in the medium term. The core business served, on average, 78,500 OTC leveraged clients per quarter in its core markets in H1 FY20, 4% higher than the quarterly average in Q2-Q4 FY19. The reduction in revenue in these markets is due to the prior year period including two months of trading prior to the implementation of the ESMA measures, and the lower level of trading by ESMA region Professional clients in Q2 FY20 compared with a strong Q2 FY19.

Revenue in the businesses identified as significant opportunities is expected to be around £40 million in H1 FY20, £12 million higher than in the same period of the prior year, driven by continued strong performance in Japan and in Emerging Markets. In mid-October IG Europe, the Group's client-facing subsidiary in Germany, started offering its clients turbo24s, which are traded on the Group's multi-lateral trading facility, Spectrum. The initial uptake has been promising and around 700 clients have traded turbo24s since launch.

IG is scheduled to announce its H1 FY20 financial results on 21 January 2020.

For further information, please contact:

IG Group Investors IG Group Press FTI Consulting

Liz Scorer Jon Laycock Neil Doyle / Laura Ewart

020 7573 0727 020 7573 0326 020 3727 1141 / 1160

investors@ig.com press@ig.com

Disclaimer - Forward-looking statements

This statement, prepared by IG Group Holdings plc (the "Company"), may contain forward-looking statements about IG Group Holdings plc and its subsidiaries (the "Group"). Forward-looking statements involve uncertainties because they relate to events, and depend on circumstances, that will, or may, occur in the future. If the assumptions on which the Group bases its forward-looking statements change, actual results may differ from those expressed in such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update these forward-looking statements. Nothing in this statement should be construed as a profit forecast.

About IG

IG empowers informed, decisive, adventurous people to access opportunities in over 16,000 financial markets. With a strong focus on innovation and technology, the company puts client needs at the heart of everything it does.

IG's vision is to provide the world's best trading experience. Established in 1974 as the world's first financial derivatives firm, it continued leading the way by launching the world's first online and iPhone trading services.

IG is an award-winning, multi-platform trading company, the world's No.1 provider of CFDs* and a global leader in forex. It provides leveraged services with the option of limited-risk guarantees and offers an execution-only stock trading service in the UK, Australia, Germany, France, Ireland, Austria and the Netherlands. IG has a range of affordable, fully managed investment portfolios, which provide a comprehensive offering to investors and active traders.

It is a member of the FTSE 250, with offices across Europe, including a Swiss bank, Africa, Asia-Pacific, the Middle East and the US, where it offers on-exchange limited risk derivatives via the Nadex brand.

*Based on revenue excluding FX (from half yearly published financial statements, June 2019)