Online trading platform IG Group was under the cosh on Wednesday as it posted a decline in third-quarter revenues, but said FY23 revenue and profit were set to be in line with current market expectations.
Group revenues fell 7% on the same period a year earlier to £293.3m, while active client numbers slipped 5% to 335,400 amid quieter market conditions and lower market volatility.
Revenue for OTC derivatives fell 18% to £179.4m, while exchange traded derivatives revenues rose 65% to £52m. Revenue from stock trading and investments was up 19% at £7.9m.
“Q3 FY23 was a quieter quarter in the market, particularly in December, with lower market volatility than in recent periods, and in Q3 FY22,” IG said. “The benefit of our diversification strategy is becoming increasingly evident, with our exchange traded derivatives business posting strong growth in both Europe and the US.”
The company said it expects FY23 revenue and pre-tax profit to be in line with current market expectations, and backed its medium-term revenue and profit margin guidance.
At 0920 GMT, the shares were down 7% at 717.50p.
