The FinancialThe renowned UK-based broker has provided some revenue numbers for its H1 2020, which falls between June 1, 2019 and November 30, 2019. According to previous forecasts provided in December, the results are “in line” with those figures and show net trading revenues at £249.9 million, which is slightly below the £250 million expected.
During this time operating profits totaled £100.1 million, which account for a decline of 11% when compared to the £112.5 million operating profit achieved in the same time period in 2019. Nonetheless, the broker has noted that the ESMA product intervention measures could have played a part in the results, although the changes were well-expected and prepared for by the company.
Given that the broker was able to grow their customer base during this time period and, in particular achieve solid growth in its overseas businesses, namely Japan and emerging markets – a rise to £40.4 million in revenue versus £12.2 million for the same time period last year signals that the broker is well-positioned to mitigate any revenue risks posed by the ESMA and MiFiD directives. In this light it will be important to see if any credit card restrictions do come into play in the UK and how IG Group will prepare for such a change in its core business.