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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