IG Group Holdings PLC (IGG.LN) said Wednesday that continued low market volatility means it forecasts falling revenue and profit for fiscal 2019, as it set out investment plans to boost growth over the next three years.
The online trading platform forecast net trading revenue of 475 million pounds ($604 million) for its year to May 31, down from GBP569 million the prior year. Operating profit is expected to fall to GBP190 million from GBP281 million.
IG Group said low levels of volatility hit its business in the first two months of its final quarter but conditions improved in the first three weeks of May.
Chief Executive June Felix, who joined the company in October, said IG Group is targeting a 30% increase in revenue by fiscal 2022. That increase is based on targeted 3% to 5% growth annually in core markets over the medium term and a GBP100 million revenue boost from “significant opportunities” in Europe, Asia and the U.S.
Operating expenses are expected to be around GBP257 million in fiscal 2019, rising by around GBP30 million in fiscal 2020 in order to invest in new opportunities. Thereafter, IG Group expects operating expenses to rise at a lower rate than revenue.
The company reiterated its intention to keep its annual dividend at 43.2 pence a share until its earnings allow for a return to progressive payouts.
Source : MTV
