LONDON (Alliance News) - London Capital Group PLC Tuesday said it has been notified by Betfair Group PLC subsidiary Tradefair Spreads Ltd that it intends to terminate their white label contract with effect from the end of December 12.
LCG's white label model allows organisations to market and profit from financial spread betting services with LCG providing the trading platform and support services. The underlying client is a client of LCG and LCG pays the white label partner for its client acquisition activities.
In the six months to June 30, clients introduced by Tradefair contributed GBP600,000 to London Capital Group's total gross profit of GBP11.7 million.
London Capital Group's shares were down 11% at 31.8 pence Tuesday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
Copyright 2013 Alliance News Limited. All Rights Reserved.
