IG Group today announced their financial results for the first six months of the year, and the owners of the group will be encouraged by what they’ve seen. This is apart from the Asian market in which they’ve currently been experiencing a number of problems due to new regulatory conditions.
Revenues as a group saw an increase of 9% to £157m compared with £143.8m last year, which was in line with management’s expectations. Revenue from the group’s UK financial business grew by 4% to £83m, however, it was in Europe that they saw a great deal of improvement.
As a whole, their offices in Europe saw revenue of £27m, which was an increase of 24% on last year, the most impressive office in Europe being Germany. The central European country saw an impressive rise in revenue of 56% for the company.
Their office in Singapore saw growth in excess of 50%, but that was it in Asia. Elsewhere, Japan in particular, experienced the first of several regulatory restrictions on leverage levels, which had an impact on their client activity levels and revenue in the country, since they came into effect in August.
In a statement, the group added: “the average monthly run-rate of revenue has been £1.5m. However, 27% of this revenue has been from equity indices and it is expected that this revenue will be very significantly reduced with the introduction of stringent leverage restrictions on equity indices on 1 January 2011.”
They were also affected adversely by legislation in the US, in particular leverage limits, seeing revenue fall to £0.8m.