London-based financial spread-betting firm IG Group Holdings has announced a 51 percent increase in full-year revenues to $368 million with profits before tax rising 41 percent to $193.98 million as volatile financial markets encouraged clients to place more bets.
Last year, revenues for IG Group were $243.98 million while pre-tax profits came in at $137.78 million with many analysts expecting profits of $192.8 million this year after averaging nine forecasts collected by the company.
IG Group revealed that it had benefited from higher business volumes as customers sought to profit from sharp price swings in financial markets after the credit crunch developed with spread bets allowing investors to profit from falling as well as rising prices.
“This year has been another highly successful year for IG Group and we have now achieved compound annual revenue growth of over 40 percent for the past ten years,” said Tim Howkins, Chief Executive for IG Group.
“We have been particularly pleased with our international business. We have opened three new international offices in the past year and we have seen good international growth, which complemented the continued expansion of our UK business. Current trading remains strong and I remain confident of our prospects.”
“IG Group has yet again delivered strong growth in revenues and earnings, achieving impressive returns for shareholders,” said Jonathan Davie, Chairman for IG Group.
“The board has recommended a final dividend of 18 cents per share, making a total distribution for 2008 of 24 cents, an uplift of 41 percent over the previous year. The significant increase in dividend reflects the high cash-generating capacity of our business and the board’s continuing confidence in the Group’s prospects.”