IG Group posts bumper quarter on virus volatility

IG Group reported its third-best quarter ever after "unprecedented" market volatility caused by the coronavirus caused a surge in dealing by trader clients.

The derivatives and spread betting platform said revenue in the three months to the end of February rose 29% to £139.8m from a year earlier. The FTSE 250 company said high volatility had continued in March and that revenue in the first 12 trading days in the fourth quarter would be about £52m.

The company benefited from increased trading by more clients as its number of active customers rose 21% to 101,700 in the third quarter. The average leveraged revenue per client rose 9% to £1,330.

Markets have shown extreme swings as traders have responded to the extreme threat posed to companies and economies by the coronavirus outbreak, whose impact was underestimated as it spread from China to developed countries.

IG said it was not possible to judge how long the volatility would last or predict revenue for the rest of the year. Amid talk of authorities shutting down stock markets to stem the panic the company warned the outlook was unpredictable.

"This sustained level of volatility and revenue is unprecedented, and it is not possible to determine how long it will persist or how clients will continue to respond," IG said. "In addition, the actions of governments and regulators are not predictable, and the group may face circumstances and events it has not previously anticipated."

The company's shares were little changed, up 1.3% to 616.20p at 08:34 GMT.