Trading statement for the year ending 31 May 2012
14 June 2012
IG GROUP HOLDINGS PLC
Trading statement for the year ending 31 May 2012
IG Group Holdings plc ("IG" or the "Group") issues the following trading update relating to the financial year ended 31 May 2012.
The Group expects to report trading revenue of £366.8m excluding the discontinued Sport business (2011: £312.7m), representing growth of 17% over the comparative period. PBT margin is expected to be 50%. The table below shows the geographical split of revenue and changes in active client numbers and revenue per client for the full year.
|
Trading revenue by region |
FY revenue |
FY KPI |
|||
|
FY12 |
FY11 |
|
Active client growth |
Revenue per client growth |
|
|
£m |
£m |
Change |
|||
|
UK |
191.8 |
167.1 |
15% |
5% |
10% |
|
Australia |
58.0 |
47.6 |
22% |
11% |
9% |
|
Europe |
72.2 |
57.5 |
26% |
32% |
(5%) |
|
Rest of World |
28.4 |
19.9 |
43% |
17% |
22% |
|
Total Financial excluding Japan |
350.4 |
292.1 |
20% |
11% |
8% |
|
Japan |
16.4 |
20.6 |
(20%) |
(19%) |
(2%) |
|
Total Financial |
366.8 |
312.7 |
17% |
7% |
9% |
In the final quarter of the year the group achieved revenue growth of 12%, a marked increase in the growth of 1.5% in the third quarter, with particularly strong client activity in the final month of the year.
The table below shows the geographical split of revenue and changes in active client numbers and revenue per client for the fourth quarter.
|
Trading revenue by region |
Q4 revenue |
Q4 KPI |
|||
|
FY12 |
FY11 |
|
Active client growth |
Revenue per client growth |
|
|
£m |
£m |
Change |
|||
|
UK |
50.3 |
44.3 |
13% |
(1%) |
15% |
|
Australia |
14.0 |
14.3 |
(2%) |
(1%) |
(1%) |
|
Europe |
19.6 |
16.5 |
19% |
21% |
(2%) |
|
Rest of World |
8.2 |
5.6 |
47% |
9% |
35% |
|
Total Financial excluding Japan |
92.1 |
80.7 |
14% |
3% |
11% |
|
Japan |
4.1 |
5.0 |
(17%) |
(24%) |
10% |
|
Total Financial |
96.2 |
85.7 |
12% |
0% |
12% |
The UK had a strong quarter with revenue growth of 13%, primarily driven by growth in revenue per client which was the highest of any quarter during the year, resulting in revenue per client growth of 10% for the full year.
Very muted consumer sentiment in the final quarter in Australia led to reduced client activity and a fall of 1% in both revenue per client and active client numbers.
The Group's European businesses continued to deliver strong growth in active client numbers which, as expected, was slightly offset by the progressive fall in revenue per client as these businesses become more established and the impact of high value early adopters is diluted. The growth was primarily driven by Spain, Italy and France.
The continued positive performance from Rest of World was driven by strong growth in both Singapore and South Africa. Growth in Singapore was driven primarily by increased revenue per client while growth in South Africa was driven by higher active client numbers.
The Group continues to see progress from Nadex, which saw a steady increase in clients through the quarter, albeit this remains immaterial to the Group as a whole.
The Group's Japanese business continues to make progress with sequential improvement in revenue per client in each of the last three quarters. Active client numbers have stabilised in the last two quarters, but are lower than those achieved prior to the introduction of final leverage restrictions in August 2011.
Outlook
The Group continues to focus on its clients and the on-going development of the Group's offering. Although the very strong first half in FY12 makes for challenging near term comparatives, IG remains well positioned for further growth in the coming year.
Today there will be a conference call for analysts and investors at 8.30am (UK time). The call can be accessed by dialling +44(0)20 3106 4822 and using the passcode 5641120. A replay of the conference call will be available for a period of 14 days after the event by dialling +44 (0)20 7111 1244 and using passcode 5641120#.
The results for the year ended 31 May 2012 will be announced on Tuesday 17 July 2012. There will be a presentation for analysts at 9.30am (UK time) at the Group's offices at Cannon Bridge House, Dowgate Hill, London EC4R 2YA. Analysts wishing to attend the presentation should contact Neil Doyle at neil.doyle@fticonsulting.com or on 020 7269 7237
For further information, please contact:
IG Group
Kieran McKinney
Head of Investor Relations 020 7573 0026
FTI
Neil Doyle / Ed Berry 020 7269 7237 / 7297
(1)References in this statement to "revenue" refer to net trading revenue, which is trading revenue excluding interest on segregated client funds and is net of introducing broker commissions.
(2) References in this statement to active clients are to the number of clients trading during the period referred to and references to average revenue per client are to revenue for the period referred to divided by the number of active clients in that period.
This information is provided by RNS
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