IG Growth Story Continues but Duty Hitting Margins

LONDON (Thomson Financial) – Spread betting company IG Group Holdings Plc. said it has continued to see strong growth across all its financial businesses throughout the year.

The company said it expects to report an increase in revenue of over 50
percent to about 184 million pounds with an EBITDA margin of about 53 percent for the year to May 31, 2008.

It said its Asia Pacific business expects to report revenue growth of more than 115 percent.

IG Group Holdings said it is positioned for further growth and that current trading remains strong adding that it is confident of its prospects in the new financial year.

Costs have however advanced because of expansion, said IG, which opened French, Spanish and U.S. units during the year.

An increase in betting duty to about 6 percent of sales from 3 percent a year earlier also will hurt the margin for earnings before interest, taxes, depreciation and goodwill, which will shrink by 4.7 percentage points to 53 percent, the company said.

The company expects to announce its results for the year to May 31 2008, on July 21.

Tags: IG Group, IG Index, iggroup, igindex, spread betting

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