Interim Management Statement

IG Group Holdings plc 05 March 2008 5 March 2008 IG GROUP HOLDINGS PLC Interim Management Statement IG Group Holdings plc ('IG' or 'the Group') issues this Interim Management Statement in accordance with the EU Transparency Directive and revised UK Listing Rules. Unless otherwise stated, trends and figures highlighted below refer to the three months ended 29 February 2008 and the corresponding period last year. Group revenue for the quarter was approximately £46m compared to £29.7m in the corresponding quarter in the prior year, an increase of approximately 55%. The rate of account opening in the Group's financial business has continued to accelerate. The Group continues to consider this a key lead-indicator of the strength of the business. The Group also continues to benefit from high levels of equity market volatility, which is an important short-term driver of client activity in the Group's financial business. The Group's new offices in France and Spain have been trading for approximately four months. The Group is pleased with the early development of both of these businesses, which has been faster than anticipated. Together these offices are now opening more than 400 accounts per month and by the end of the quarter they were already generating sufficient revenue to cover their direct monthly costs. During December the Group completed the purchase of HedgeStreet Inc ('HedgeStreet'), a US-based, CFTC regulated, exchange. HedgeStreet commenced trading, with a limited product set, in early February. While revenue is not yet significant, the volume of contracts traded on the exchange has been ahead of the Group's expectations. The Group's other US-based business, IG Markets Inc, is on track to commence trading in April. It is not anticipated that either of these businesses will contribute materially to Group revenues in the current financial year. Over the last two years the Group has established operations targeting clients in Singapore, Germany, Italy, Spain and France. Together these operations now account for revenue of over £1m per month and they all continue to experience rapid revenue growth. The Group continues to evaluate new markets in order to further extend its geographic reach. As previously noted, the Group has also made significant investment in its infrastructure, primarily in the US and Europe, and in the areas of marketing and consumer education. Costs remain in line with management expectations. It remains impossible to predict future trends in market volatility or customers' reaction to any changing market conditions. However, the board remains confident in the Group's prospects for the current financial year and that IG is well-positioned for further growth. For further information please contact: IG Group 020 7896 0011 Tim Howkins, Chief Executive Steve Clutton, Finance Director Financial Dynamics 020 7269 7200 Robert Bailhache Nick Henderson This information is provided by RNS The company news service from the London Stock Exchange
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