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IG Group unveils strategy to drive growth as lull in trading activity continues

By BFN News | 07:37 AM | Wednesday 22 May, 2019


IG Group unveiled a four-pronged strategy to deliver growth as the brokerage reported that the lull in client trading activity seen in the third quarter had continued in the first two months of the fourth quarter. The company also reiterated that revenue this year, would be below that of last year. The group would set out four levers aimed at delivering revenue growth, including expanding distribution channels; focusing more on local markets, segmented target markets and multi-product offerings. In the first two months of fourth quarter, the low levels of volatility and market activity experienced in third quarter had continued, though an improvement was seen in the first three weeks of May, the company said. Revenue in the fourth quarter was expected to be around £115m, up from £108m in the third quarter of the year. The full year net trading revenue was projected to be around £475m, down from £569m a year earlier. The projected 17% year on year reduction in net trading revenue was blamed on the 26% reduction in OTC leveraged revenue in the ESMA region, with OTC leveraged revenue in the rest of the world up by 2%.� The company maintains expectations to pay an annual dividend of 43.2p a share. The group's total operating costs for 2019 were expected to be around £285m, down from £290m. Operating profit for 2019 was expected to be around £190m, down from £281m. Story provided by StockMarketWire.com

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