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IG Group Sees Lower Revenues In H1; Stock Dips - Quick Facts

Shares of IG Group Holdings plc (IGG.L) were losing around 5 percent in the early morning trading in London after the online trading company Tuesday said it expects revenue in the first half to be around 6% lower than last year.

In its pre-close trading statement for the six months ended November 30, the company noted that the ESMA product intervention measures came into effect during the period. The prohibition on offering binary options to retail clients became effective from 2 July 2018 and the restrictions relating to the provision of CFDs to retail clients were effective from 1 August 2018. Group revenue in the four month period since all the measures came into effect is expected to be around 10% lower than in the same period a year ago.

Revenue in that four month period in the ESMA region (UK and EU) is expected to be around 20% lower, with revenue from the Group's business in APAC and other non-ESMA region countries expected to be around 9% higher.

Both of these figures are underlying changes, adjusting for the 1,200 clients who previously contracted with a UK entity who are now trading with an entity outside the ESMA region.

The number of clients in the UK and EU who have elected to be classified as professional continued to increase during the period. Around 70% of UK and EU revenue in the four months since all the measures were introduced has been generated by professional clients.

The company said it has continued to make progress with its strategic initiatives. IG Europe, the Group's client facing subsidiary in Germany, has received its licence from BaFin. This provides certainty that IG will be able to offer its regulated financial products in all EU member states following the UK's exit from the EU.

Further, the company said Sally-Ann Hibberd, a Non-Executive Director and member of the Audit and Remuneration Committees has also been appointed as a member of the Nomination Committee.

The next performance announcement from IG will be on January 22, 2019.

In London, IG Group shares were trading at 580 pence, down 4.68 percent.

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