Last Friday, over-the-counter giant IG Group Holdings published an update on trading information for the last quarter of its fiscal 2020, in which it announced that it continues to capitalize on the high volatility of financial markets caused by the coronavirus pandemic.
Starting from the last week of February, trading markets experienced an increased level of volatility, which persisted during March and April. In this regard, the British company said it continues to observe a high level of customer activity and an increase in the total number of new active customers.
The IG Group fiscal year ends May 31, 2020, which is why the fourth quarter covers the period from early March to the end of May this year. Already, the company’s revenue for the first 36 trading days of 61 in the fourth quarter is estimated at approximately 173 million pounds.
This is an important indicator since revenue for the entire third quarter of fiscal 2020 was £140 million, and revenue for the first half of 2020 was £250 million.
IG noted that due to the unprecedentedly high level of volatility, it is impossible to reliably say how long this situation will last and how customers will respond to it. In this regard, it is difficult to make forecasts for the 4th quarter or the entire financial year.
Commenting on the company’s performance, IG CEO, June Felix, stated in her statement that during such a long period of instability, many customers prefer to trade with IG, which reflects the stability of the business, the reliability of the system and desire for high-quality service.
IG Group expects an influx of new customers
In the first 36 trading days of the last quarter, IG Group attracted more than 22,500 new leveraged clients. To be equal: in the first three quarters, the increase was 36 thousand.
In addition, the company updated its operating expenses data. According to forecasts, in 2020 they will increase by about 40 million pounds to 300 million. Earlier, an increase of 30 million pounds was expected.
Among other things, the online broker announced that he had allocated £5 million from his profit for the fiscal year 2020 before taxation to the IG Brighter Future Fund. The purpose of this fund is to improve educational opportunities for low-income young people in the countries where the Group operates.