Home Broker News IG Group Enjoys Growth in Topline Revenue in 9MFY20, thanks to Covid-19

IG Group Enjoys Growth in Topline Revenue in 9MFY20, thanks to Covid-19

Unexpected surge in cliental activity of one week lifts the topline revenue for entire quarter

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IG Groups reports unprecedented growth in third-quarter’s revenue, but remains uncertain if the same will follow in the fourth quarter

IG Group Holding pls announced its financial results for the third quarter ending May 31, 2020, on Thursday, wherein it saw remarkable growth in sales revenue, resulting from a surge in client activity that took place by the end of February.

During the quarter, the company’s sales revenue surged by nearly 29 percent to £139.8 million as compared to the corresponding period of last year. It is pertinent to note that this is perhaps the highest growth in topline income that the company has witnessed since August 2018, and the third-highest quarterly revenue ever reported in its financial history.

As stated earlier, the growth in revenue resulted from higher client activity, in which the company catered to the needs of around 101,700 Over the Counter (OTC) leveraged active clients, i.e. nearly 21 percent higher as compared to the prior year. Not only this, but the company also saw decent growth in the average OTC leveraged revenue per client, which climbed by around 9 percent to £1,330.

The company has informed the market spectators that the high level of cliental activity seen in the last week of February has been successfully extended in March, as the revenue of the company in the first twelve days of the ongoing quarter has already reached nearly £52 million.

In an official statement released to the market participants, the Company stated that these are extraordinary times for the company. However, it expressed concern over the level of volatility being witnessed in the revenue, stating that ‘it is not possible to determine how long it will persist or how clients will continue to respond’.

It further stated that it is difficult to forecast the performance of the company in terms of revenue for the fourth quarter, as it might be faced with unforeseen circumstances given the uncertain and unpredictable nature of the actions taken by the State and regulators.

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