IG Group - First Quarter Revenue Update

[idpickering]

IG Group Holdings plc ("IG", "the Group", "the Company"), a global leader in online trading, today issues an update on its revenue for the three months to 31 August 2018, the first quarter of its FY19 financial year. The trends and figures highlighted below refer to this period and the corresponding period last year.

Revenue was £128.9m in the first quarter of FY19, 5% lower than in the same period in the prior year, which was a record quarter. The heightened level of volatility in financial markets and client activity experienced in FY18 have not continued into FY19.

The table below sets out revenue and key performance indicators by reporting segment. This period reflects the ESMA prohibition on offering binary options to retail clients from 2 July and the measures relating to the provision of CFDs to retail clients from 1 August:

https://www.investegate.co.uk/ig-group- ... 00063256B/

[idpickering]

Could be a buying opportunity should you wish to do so, as the share price is down 4.5% on market opening. I note some chat hereabouts on this share, but not one for me thanks.

Ian.

[monabri]

The business itself is good ( high ROCE) but one simply doesn't know what's round the corner legislation wise.
The 5 and 10 year dividend CAGR is a very lovely 13%... Maybe it's one for a diverse portfolio....

[monabri]

Worth a quick read

https://www.londonstockexchange.com/exc ... 58000.html

( Money going back into pocket!)

[AndyPandy]

As a private investor that uses Spreadbets (City Index in my case) alongside my portfolio, I've been hit by the margin requirement changes from 1st August. CI would only let me close out old positions, not add to them. Future positions will be subject to the new Margin requirements.

As I do not qualify to apply for their definition of Professional status (it's only pin money - about 5% of my total portfolio), that's me out of the SB game as I can't gear up as much as I want to (yes, I know that's what it's designed to prevent...). I'm guessing that a lot of smaller PIs will be the same, especially as PIs are forced to close out their Dec spreads, which would be the last ones under the 'old' margin requirements (or possibly March 2019?). Under a tougher environment, there will also be fewer new clients than before replacing the natural attrition, so would expect lower figures again at next Report time.

In a normal Business, it can make sense to concentrate on fewer clients that are higher rollers. Because everything here is so automated I don't think this applies - profit % margins must be pretty similar whatever the size of the bet.

Whilst I did pretty well with the shares themselves in the aftermath of the 2016/7 plunge, I'm currently out and on the sidelines watching this play out.