IG Group FY trading revenue set to rise amid increased volatility

(Sharecast News) - Online trading platform IG Group said on Thursday that full-year trading revenue is expected to be higher than last year as it continues to benefit from increased volatility due to the coronavirus pandemic.
IG said that since its update in April, financial market volatility has remained elevated and it has continued to see high levels of client trading activity. Net trading revenue in the fourth quarter is now expected to be around £259m, up from £117.9m in the same period a year ago, with full-year net trading revenue set to rise to approximately £649m from £476.9m.

"As previously announced, the group has successfully implemented its comprehensive business continuity plan in response to the Covid-19 virus. The group's ongoing investment in communications and infrastructure has enabled all employees to work safely from home, and IG will continue to invest in technology in order to provide the best possible service for our clients."

IG said it will take a cautious approach in returning to its offices around the world, in keeping with the guidance of local governments.

The company's full-year results are due on 23 July.

Shore Capital said: "It is very difficult to determine how long these buoyant trading conditions will persist how clients will continue to respond to market turbulence, and IG has provided no forward-looking trading commentary in its update. Lockdown conditions have been highly conducive for the flow of new customers with overall customer activity levels also likely to have been supported by the absence of events for sports betters.

"These conditions are likely to feature in the beginning at least of the year ending 31 May 2021 so we envisage some upside risk to our FY 2021F forecast which at £574m of revenue implies £2.2m per day. Having put through material upgrades as recently as April following the surprise trading update, we will again review our estimates. Consensus is likely to put through much more significant upgrades on the back of today's statement."