22 May 2019
LEI No: 2138003A5Q1M7ANOUD76
IG GROUP HOLDINGS PLC Pre Close Trading Update
IG Group Holdings plc ("IG", "the Group", "the Company"), a global leader in online trading, today issues a trading update on the fourth quarter of its FY19 financial year ("Q4 FY19") and its financial year ending 31 May 2019 ("FY19").
Trading Update
The low levels of volatility and market activity experienced in Q3 FY19 continued into the first two months of Q4 FY19. In the first three weeks of May market conditions have been more favourable and the Group's high quality and loyal client base have identified and taken opportunities to trade. As a result, revenue in the fourth quarter is expected to be around £115 million compared with £108 million in the third quarter of the year. The full year net trading revenue is therefore projected to be around £475 million (FY18: £569 million).
The projected 17% year on year reduction in net trading revenue has been driven by the 26% reduction in OTC leveraged revenue in the ESMA region, with OTC leveraged revenue in the rest of the world up by 2%. Both of these figures are underlying changes, adjusting for the clients who previously contracted with a UK entity who are now trading with an entity outside the ESMA region.
The Group's total operating costs for FY19 are expected to be around £285 million (FY18: £290 million), including variable remuneration of around £28 million (FY18 £36 million).
The Group's operating profit for FY19 is expected to be around £190 million (FY18: £281 million).
Dividend
The Board reiterates that the Company expects to maintain the 43.2p per share annual dividend until the Group's earnings allow the Company to resume progressive dividends.
Strategic Update
The Group is hosting a strategy and business update at its corporate headquarters in central London at 4pm today.
IG is scheduled to announce its full year results for FY19 on 23 July 2019.
For further information, please contact:
IG Group Investors
Liz Scorer
020 7573 0727
[email protected]
IG Group Press
Ramon Kaur
020 7573 0060
[email protected]
FTI Consulting
Neil Doyle / Ed Berry
020 3727 1141 / 1046
Disclaimer -Forward-looking statements
This statement, prepared by IG Group Holdings plc (the "Company"), may contain forward-looking statements about IG Group Holdings plc and its subsidiaries (the "Group"). Forward-looking statements involve uncertainties because they relate to events, and depend on circumstances, that will, or may, occur in the future. If the assumptions on which the Group bases its forward-looking statements change, actual results may differ from those expressed in such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update these forward-looking statements. Nothing in this statement should be construed as a profit forecast.
About IG
IG empowers informed, decisive, adventurous people to access opportunities in over 15,000 financial markets. With a strong focus on innovation and technology, the company puts client needs at the heart of everything it does.
IG's vision is to be a global leader in retail trading and investments. Established in 1974 as the world's first financial spread betting firm, it continued leading the way by launching the world's first online and iPhone trading services.
IG is an award-winning, multi-platform trading company, the world's No.1 provider of CFDs* and a global leader in forex. It provides leveraged services with the option of limited-risk guarantees and offers an execution-only share dealing service in the UK, Australia and Continental Europe. IG has a range of affordable, fully managed investment portfolios, which provide a comprehensive offering to investors and active traders.
It is a member of the FTSE 250, with offices across Europe, including a Swiss bank, Africa, Asia-Pacific, the Middle East and the US, where it offers on-exchange limited risk derivatives via the Nadex brand.
* Based on revenue excluding FX (from published financial statements, February 2018)
