IG Group Upbeat On FY10 Despite Lower Market Volatility

British financial services firm IG Group (IGG.L) lifted its total dividend by a quarter on Tuesday after its profit rose 17 percent for its latest financial year, in-line with market expectations.

The board recommended a final dividend for the year of 11 pence per share, making a total payout for the year to the end of May 15p, up from 12p the year before.

“The group is in good health, with a strong competitive lead and I remain confident about the prospects for the coming year,” said Chief Executive Tim Howkins.

* Full-year profit up 17 pct, in line with expectations.

* EBITDA up 33 pct at 131.1 mln pounds.

* Full-year dividend 15 pence per share, up 25 pct.

The London-based company, best known for its IG Index business that lets people bet on price moves in stocks, currencies and commodities generated net profit of 78.7 million pounds ($129.3 million), up from 67.3 million a year earlier and compared to IBES average estimate of 78 million pounds. Revenues were up 40 percent to 257.1 million. ($1=.6087 Pound)

Thoughts: A good market update by IG with the group having posted a 40% in revenue to £257.1m and a 33% increase in EBITDA to £131.1m for the year ended 31 May 2009.

It is interesting to note the breakdown in revenues with indices accounting for 38 percent of the total revenues, currencies 35 percent, shares 18 percent and commodities and sports for the rest. Also, the company said that less than 2% of IG’s customer base were based in London. Single stock equity trading was 40 per cent of volume two years ago, but fell to 11 per cent last February and rose to 23 per cent in May 2009.

Tags: IG Group, IGG.L

This entry was posted on Monday, July 27th, 2009 at 3:49 pm and is filed under Financial Updates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.