HawkInsight

  • Contact Us
  • App
  • English

IG Group’s APAC Revenue Challenges UK Dominance

IG Group (LON: IGG) recently published its six-month financial results for the period between June and November, during which it implemented a new decentralised operating model.

IG Group (LON: IGG) recently published its six-month financial results for the period between June and November, during which it implemented a new decentralised operating model. The company is now generating more over-the-counter (OTC) revenue from APAC and the Middle East than from its home market, the UK and Ireland.

According to the interim results, the London-listed broker now divides its business into five geographically aligned divisions: UK and Ireland, APAC and Middle East, United States, Europe, and Institutional and Emerging Markets.

The Growth Is in APAC

From the UK and Ireland division, the broker generated £138.3 million in total revenue, an increase of 11 per cent year-on-year. APAC and the Middle East became its second-largest market, contributing £131.4 million.

Breon Corcoran, CEO, IG Group, Source: LinkedIn

However, in terms of OTC revenue, APAC and the Middle East surpassed the UK and Ireland, generating £129.2 million compared to £127.4 million.

Among the APAC markets, Japan led with £43.8 million in revenue, followed by Australia at £40.1 million and Singapore at £38.1 million.

IG’s revenue from the US market increased by 18 per cent to £77.3 million, while the growth rate in Europe remained steady at £63.1 million. The Institutional and Emerging Markets division contributed £41.6 million. Unlike other regions, IG’s offerings in the US are dominated by exchange-traded derivatives.

When it comes to revenue per client from OTC trading, IG generated £3,056 from each trader in the UK and Ireland, while clients in APAC and the Middle East contributed £2,479. European traders brought in £1,961 per client, whereas traders in the Institutional and Emerging Markets division outperformed all regions, generating £3,222 per client.

Singapore has always been only small market where IG benefited the most. However, the broker now stopped publishing per client revenue from the Southeast Asian city-state.

“In the Institutional and Emerging Markets division, trading revenue increased by 20%, with almost all of the revenue coming from OTC derivatives,” IG stated in its results. “Active clients reduced by 3%, offset by a 23% increase in revenue per client.”

Marketing Spends Declined

As previously reported by Finance Magnates, IG generated £522.5 million in total revenue and £451.7 million in net trading revenue during the first six months of the ongoing fiscal year. Its pre-tax profits for the period also rose by 30 per cent to £266.8 million.

Meanwhile, IG’s spending on marketing and advertising decreased by 4 per cent to £42.2 million. The group’s headcount also declined by 10 per cent, leaving it with 2,489 staff members.

IG Group (LON: IGG) recently published its six-month financial results for the period between June and November, during which it implemented a new decentralised operating model. The company is now generating more over-the-counter (OTC) revenue from APAC and the Middle East than from its home market, the UK and Ireland.

According to the interim results, the London-listed broker now divides its business into five geographically aligned divisions: UK and Ireland, APAC and Middle East, United States, Europe, and Institutional and Emerging Markets.

The Growth Is in APAC

From the UK and Ireland division, the broker generated £138.3 million in total revenue, an increase of 11 per cent year-on-year. APAC and the Middle East became its second-largest market, contributing £131.4 million.

Breon Corcoran, CEO, IG Group, Source: LinkedIn

However, in terms of OTC revenue, APAC and the Middle East surpassed the UK and Ireland, generating £129.2 million compared to £127.4 million.

Among the APAC markets, Japan led with £43.8 million in revenue, followed by Australia at £40.1 million and Singapore at £38.1 million.

IG’s revenue from the US market increased by 18 per cent to £77.3 million, while the growth rate in Europe remained steady at £63.1 million. The Institutional and Emerging Markets division contributed £41.6 million. Unlike other regions, IG’s offerings in the US are dominated by exchange-traded derivatives.

When it comes to revenue per client from OTC trading, IG generated £3,056 from each trader in the UK and Ireland, while clients in APAC and the Middle East contributed £2,479. European traders brought in £1,961 per client, whereas traders in the Institutional and Emerging Markets division outperformed all regions, generating £3,222 per client.

Singapore has always been only small market where IG benefited the most. However, the broker now stopped publishing per client revenue from the Southeast Asian city-state.

“In the Institutional and Emerging Markets division, trading revenue increased by 20%, with almost all of the revenue coming from OTC derivatives,” IG stated in its results. “Active clients reduced by 3%, offset by a 23% increase in revenue per client.”

Marketing Spends Declined

As previously reported by Finance Magnates, IG generated £522.5 million in total revenue and £451.7 million in net trading revenue during the first six months of the ongoing fiscal year. Its pre-tax profits for the period also rose by 30 per cent to £266.8 million.

Meanwhile, IG’s spending on marketing and advertising decreased by 4 per cent to £42.2 million. The group’s headcount also declined by 10 per cent, leaving it with 2,489 staff members.

Disclaimer: The views in this article are from the original Creator and do not represent the views or position of Hawk Insight. The content of the article is for reference, communication and learning only, and does not constitute investment advice. If it involves copyright issues, please contact us for deletion.