IG Group Says Its Full-Year Profit May Increase by 25% on Currency Betting
Stock Chart for IG Group Holdings PLC (IGG)
IG Group Holdings Plc, owner of the IG Index financial spread-betting brand, said it expects full- year adjusted pretax profit will climb 25 percent as it benefited from volatility in foreign-exchange and stock markets.
So-called adjusted pretax profit will probably increase to about 157 million pounds ($227 million) in the year ended May 31, the London-based company said today in a Regulatory News Service statement. Sales will advance about 16 percent to 298 million pounds. The shares rose as much as 6.4 percent.
Unpredictable movements in currencies helped lure existing clients to bet and trade more and helped IG gain new customers, the company said. IG’s Australian and European offices showed “strong growth,” with Germany leading gains in continental Europe.
“It remains difficult to predict future trends in volatility or customer reaction to changing market and economic conditions,” the company said in the statement. “Strong account opening and the continued development of the group’s offering leave the group well positioned for further growth.”
IG rose 25 pence, or 6.4 percent, to 417.2 pence at 8:08 a.m. in London. The shares have gained 9.9 percent so far this year, giving it a market value of 1.5 billion pounds.
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