IG investing platform witnessed the downfall of stock trading in Q3 compared to the same quarter a year ago. Fresh data reveals the group mainly benefited in the first three quarters when the pandemic returned with a new variant named Omicron. There was a rise in the number of active customers to 292,200 between December 2020 and February 2021, which was an up from 220,900 in the same period about a year ago.
The company is expecting a moderate rise in 2022 while a slowdown of options trading in the US means the growth could be below the earlier guidance of about 25 percent or 30 percent.
Boss June Felix of the IG Group said he is delighted to announce another outstanding quarter performance that is mainly driven by an increased number of active traders during the period and the company now offers a wide range of products.
The total revenues in the Q3 were up by about 13 percent at 257.2 million pounds. There was an increase of 4 percent revenues in the OTC leveraged derivatives to 219 million pounds and it supported in offsetting the stock trading dive of 54 percent that led to a drop of 6.6 million pounds revenue.
IG added that the group is in a good position for the near future and mid-term revenue guidance is unchanged.
Meanwhile, inflation in the United Kingdom and several parts of Europe has increased due to the Russian invasion of Ukraine that resulted in multiple sanctions on Russia by the Western allies. The import of oil and gas from Russia has been banned and the Russian banks have been removed from the international SWIFT payment systems.
Prices of food and other necessary items have been increased. Bank of England is learned to be increasing the interest rates. Economists throw doubt the increase in interest rates may lead to stagflation.
About IG Group
IG Group was founded in 1974 by Stuart Wheeler and is headquartered in London, UK. It is regulated by the Financial Conduct Authority and the stocks are listed on the LSE. It is an FTSE 250 Index company.
The company was initially named Investors Gold Index and it facilitated the trading of gold prices as an index without the need to buy the physical gold.
The current key people include chairman Mike McTighe and chief executive officer June Felix. The group offers spread betting and CFDs in the UK.