IG Group revenues up despite Japan decline
UK continues to provide the bulk of business for spread betting operator.
IG Group has made light of a decline from its Japanese operations to record a 17.3% year-on-year increase in net revenues, the spread betting operator has revealed in its results for the year ended 30 June.
The year-on-year rise, from £312.7m to £366.8m, helped profit before tax increase 13.8% to £185.7m. The bulk of the revenues came from the UK, with the region accounting for 52.3% of the overall total.
Japan’s £16.5m total represented 4.5% of group net revenues, down from its 6.6% contribution in 2011, while Australia and Europe both contributed significantly more in 2012.
Noting tougher comparatives for the first half of the 2013 financial year, chief executive Tim Howkins explained “Against this backdrop revenue this year is forecast to be more weighted towards the second half than historically,” however he added that “Under normal market conditions, we continue to expect modest growth in revenue for the year as a whole.”
The group has also announced that deputy chairman and one-time CEO Nat Le Roux will step down from his role after the upcoming AGM after 20 years with IG Group.
Chairman Jonathan Davie said: “In searching for a replacement for Nat, the board recognises that it is important to consider diversity (of gender, skills, knowledge and experience) when appointing new members to the board, especially following publication of the Davies Review on Women on Boards.”
Andrew MacKay, director of corporate strategy will also step down from the board and leave the company in six months time in order to “pursue other interests”. MacKay joined IG Group in 1999 as group legal counsel and was appointed to the board in 2003. He spent three years as head of Asia Pacific before his most recent appointment as head of corporate strategy. Davie said: “I am sorry to lose Andrew and I am exceptionally grateful for the help and guidance he has provided over many years. He has played a key role in IG’s development for over a decade, and has been central to the company’s global expansion. I wish him every success in the future.”
MacKay added: “In 1999 I joined a small company with some very talented people. I am proud to have spent 13 years developing this business alongside such a great team, and to leave it as a truly global player and a leader in its field.”
Following today’s publication of the FY 2012 results, analyst James Hollins of Investec retained his firm’s ‘Buy’ recommendation, saying: “We believe in the long-term returns from the global market leader that is demonstrating the strength of its offer to consumers across mature (UK, Australia) and immature, high growth (Germany, Italy, France, Singapore) markets.”