By Yamini Kalia (Reuters) -British online trading platform IG Group reported a 30% leap in first-half profit on Thursday, helped by a pick up in trading activity in volatile markets, though its CEO
IG Group Profit Surges, CEO Eyes Crypto Improvements
By Yamini Kalia
(Reuters) -British online trading platform IG Group reported a 30% leap in first-half profit on Thursday, helped by a pick up in trading activity in volatile markets, though its CEO highlighted areas for improvement, including in cryptocurrencies.
Breon Corcoran, in an analyst call, said IG had missed a couple of market opportunities in the past six months and rated its performance "six out of ten".
"Our crypto offer is very sub-par ... That's one of the big misses actually, for the first half, I'd like to have made more progress there," Corcoran said.
While geopolitics in the Middle East, lower interest rates and November's U.S. elections fuelled market volatility, boosting client transactions on spread betting platforms, IG Group failed to attract new customers.
The company has been trying to add customers via acquisitions and product launches, a strategy that has worked well for rival Plus500. IG Group recently bought investment platform Freetrade to expand its trading portfolio in the UK and access a wider customer base.
Shares of the FTSE 250 member hit a record high of 1,106 pence, before reversing to trade down 3.2% at 1050 GMT.
IG Group's net trading revenue rose 12% in the six months ended Nov. 30, while active clients dipped 0.3% to 295,300.
Analysts are betting on more market volatility and potentially fewer regulations from U.S. President Donald Trump's second term to boost both IG Group and Plus500.
Shares of peer CMC Markets fell 10% on Thursday after it dashed some investors' hopes of an upgrade to profit guidance. Plus500 last week forecast 2024 revenue would top expectations.
IG Group's first-half adjusted pretax profit of 266.8 million pounds ($328.27 million) was up from the previous year's 205.7 million pounds.
($1 = 0.8127 pounds)
(Reporting by Yamini Kalia in Bengaluru. Editing by Subhranshu Sahu and Mark Potter)
