Online trading platform IG Group has reported one of its best ever quarters amid “unprecedented” market volatility as the coronavirus crisis has pummelled equities.
The derivatives and spread betting group said revenues surged 29% higher to £139.8 million in the three months to February 29 – the third highest quarterly revenue in its history – as it trades through “extraordinary times”.
IG said increased trading in the market mayhem saw its number of active customers rise 21% to 101,700 in the third quarter, with the average leveraged revenue per client up 9% at £1,330.
This sustained level of volatility and revenue is unprecedented, and it is not possible to determine how long it will persist or how clients will continue to respondIG Group
It said the high levels of volatility have continued into March, with revenues in the first 12 trading days of its final quarter so far estimated to be around £52 million.
But the firm said it was unclear how long the current conditions would last.
It said: “These are extraordinary times.
“This sustained level of volatility and revenue is unprecedented, and it is not possible to determine how long it will persist or how clients will continue to respond.”
It added: “The actions of governments and regulators are not predictable, and the group may face circumstances and events it has not previously anticipated.”
Markets have been sent into meltdown as many countries around the world have gone into lockdown as the Covid-19 outbreak spreads.
Recent falls have seen more than half a trillion pounds wiped off the FTSE 100 Index in less than three weeks, with the top flight losing almost 11% of its value last Thursday in the biggest one-day fall since 1987.
IG Group said it had also put in place a “comprehensive business continuity plan” in response to the outbreak, with all employees able to work from home and communicating regularly with staff.
It said the plan was “operating as anticipated”.
Analysts at Shore Capital said they expected to up their forecasts for IG Group by around 5%.
But they added: “The key question is how many of the recently added clients IG can hold on to beyond the current bout of market turbulence.”