Stagnant markets cause concern.
IG Group (LSE: IGG) warned that revenue in the first six weeks of the current financial period has been lower than the same period last year. The company said dull markets in this period have presented our clients with fewer trading opportunities.
Consequently, shares in IG Group slipped 0.7% to 459p, even though the spread-betting company hiked its full-year dividend by a better-than-forecast 12.5% to 22.5p. The world's largest spread-betting company by turnover said full-year profits gained 14% to £186m, which was in line with market expectations. Trading revenue rose 17% to £367m.
Chief executive Tim Howkins said: "For the year as a whole we increased revenue by 17%. Undoubtedly this success sets us some tough comparatives for the year ahead, but we will continue to invest appropriately in the capabilities of our business, in technology, marketing and geographic and product development, to position the company for long term growth."
Strong growth was reported in four out of five of the company's geographic regions. Revenues in the UK grew 15%, and in Australia trading revenues were up 22%. Sales in Europe rose 26%, and revenues in the Rest of the World grew by 43%, with around 80% of the total coming from Singapore.
Revenues in Japan fell 20%, but IG Group said there are signs that business in the company has stabilised following leverage restrictions at the end of the first quarter. That impacted the ability of clients to trade at the same level as previously.
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> David does not own any shares mentioned in the article.