UK -based IG Group Holdings plc (LON:IGG) published an update on its performance for the final quarter of the broker’s financial year, which ends May 31, 2020 (4Q FY2020). The broker indicated that they continue to see exceptional growth in customer activity and trading as a result of market volatility surrounding the Covid-19 pandemic and global economic disruptions.
Given the update was published last week, revenue for the first 36 trading days out of the total 61 in Q4 of 2020 is estimated to be at around £173 million. This is a significant improvement over the £139.8 million for 3Q FY20 and £249.9 million for the first half of fiscal 2020. Also, IG Group has attracted more than 22,500 new over the counter (OTC) leveraged clients who have traded with the company for the first time. This is in comparison to the 36,000 who joined in the first three quarters of the fiscal year.
Due to the unprecedented sustained level of financial market volatility and revenue, IG has outlined it is difficult to predict how long it will last for and how its clients will continue to remain highly active, therefore, the company has said it can’t accurately say what revenue for the Q4 of FY2020 will be. Nonetheless, the firm indicated that are expecting expenses to increase by around £40 million in FY20, to £300 million, up from an estimated £30 indicated previously.