(Reuters) - British online financial trading company IG Group Holdings Plc said first-half net trading revenue was expected to grow 9 percent as lower costs and an expanding client base continued to help it offset the impact of quiet markets.
The company’s stock was up 4.1 percent at 679.5 pence at 1034 GMT on Tuesday, making it the best performer on the FTSE Midcap index.
IG Group, which provides online stockbroking and trading services to retail investors, also said the nature and timing of potential regulatory changes in Britain and some other key markets remained uncertain.
“It remains difficult...to predict what impact regulatory change may have on the Group this financial year and beyond,” IG Group said.
Britain’s financial watchdog, the Financial Conduct Authority, joined other European regulators last year to regulate the 3.5 billion pound financial spreadbetting industry, where it said most retail investors lose money.
IG Group also said first-half operating costs, excluding variable remuneration, would be about 7 percent lower than a year ago, helped by lower advertising and marketing spend.
IG’s upbeat trading statement follows rivals CMC Markets, who reported a 58 percent jump in first-half profit, and Plus500, which reported higher third-quarter revenue on rising customer numbers.
Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amrutha Gayathri and Shounak Dasgupta