IG Group Revenues Rise as Profits Fall in First Half of FY 2016

IG Group (LON:IGG) has filed a preliminary report with the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term this morning, revealing that the company’s profits have dropped despite an increase in revenues. The brokerage has announced that its profits before taxes declined by 2.8 per cent when compared to last year to £98.6 million.

Avid industry news reader? take the Finance Magnates quiz

Looking at the revenues of IG Group, the figure was reported higher by 8.8 per cent year-on-year, which totals £214.8 million. The decline in profits is primarily due to an increase in expenses, which totaled 18.7 per cent year-on-year. The company has clarified in its announcement that the increase in spending is related to investments in future growth.

Diluted Earnings Per Share (EPS) were down 2.5 per cent to 20.91 pence, while IG Group generated £87.2 million of its own funds from operations. The figure was flat when compared to the same period of fiscal 2015.

The London headquartered brokerage has announced an interim dividend of 8.45 pence per share, which is in line with its dividend policy. During the period, the firm registered a 25 per cent increase in new clients, defined as first trades.

IG Group has also highlighted an ongoing steady growth in the number of clients of the company’s stockbroking unit. The company has also announced that it has made significant progress made in improving its client on-boarding process.

The new CEO of IG Group, Peter Hetherington, commented on the results: “Building on our strong operational and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term capabilities, we are driving continuous improvement and value from the current business. At the same time, we are laying foundations for broadening the IG offering, to take advantage of supportive macro trends in financial behavior, by leveraging the market-leading platform we have built."