IG slumps as bad debt soars
November 20, 2008admin No Comments »
Shares in spredbetting firm IG Group tumbled 27 percent as it sees a surge in bad debt with Numis saying, “the composition will change more dramatically as higher revenue growth is offset by higher bad debts and betting duties.”
Numis says directionally, it expects greater downside risk to its numbers, as the company reports that bad debt increased to 15 million pounds, 80 percent of which was in October.
The news took the shine off IG Group’s more positive figures, which saw account openings in second quarter stand at 22,000, up from 10,000 in the previous year, while revenues soared by 45 percent year-on-year and its international business also performed well.
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