Spread betting firm IG Group saw a fall-off in revenue in the third quarter as it ran up against strong figures from a year earlier, when markets were particularly volatile.
Revenue in the three months to the end of August - the first quarter of the group's financial year - was in line with expectations at £81.5m, 18% lower than the prior year figure of £99.6m.
The group's major market is the UK, and here revenue was down 21% to £41.1m. The number of active clients in the UK was down 16% and revenue per client was 6% lower year-on-year (y/y).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Get 6 issues free
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Europe saw revenue slide 20% to £15.4m versus the first quarter of fiscal 2012, even though the number of active clients rose 12%, as the group opened new offices in Sweden and the Netherlands. Revenue per client plunged 28% y/y.
In Australia, the number of active clients and client per revenue both fell 9% from a year earlier, while first quarter revenue was down 17% y/y to £15.4m.
"Recent market share data in Australia indicates that IG's market share increased over the prior year from 34% to 37%, in a market which grew by 7%; this is particularly pleasing against the backdrop of increased competition and higher competitor marketing," the company said.
The troublesome Japanese arm, where the firm has been wrong-footed by changes to regulations, saw revenue slide 11% to £3.9m. Active clients plunged 32% y/y although revenue per client was up 9%.
That leaves the Rest of the World contributing revenue of £7.0m, down 4% y/y, with the number of active clients up 19% and revenue per client down 20%.
The group continues to face tough comparatives at the start of the second quarter, with September 2011 the second highest revenue month in the history of the company, following on from August 2011, which was far and away the group's best trading month.
"The investment in technology, combined with strong brand identity and the lead IG enjoys in the majority of the markets in which it operates leave it well positioned for further growth," the trading statement concluded.
JH
High earners underestimate how much they need to retire comfortably
Retired banker who gave wife £80m to avoid inheritance tax won’t face equal split in divorce
