LONDON (Reuters) - Financial trading platform IG Group (IGG.L) reported a 29% jump in third-quarter revenue on Thursday, as client activity on its website peaked due to “exceptionally high” market volatility set off by the coronavirus outbreak and the oil price crash.
The FTSE 250-listed company, which provides online stockbroking and trading services to retail investors, said revenue rose to 139.8 million pounds ($161.89 million) for the three months ended Feb. 29, from 108 million pounds a year earlier.
IG also posted net trading revenue of 389.7 million pounds, 9% higher than in the same period a year ago.
The company said a high level of volatility in late February has continued into March, with revenue in the first 12 trading days of its fiscal fourth quarter estimated to be around 52 million pounds.
However, it said it remained difficult to predict revenue going forward as the actions of governments and regulators in the fight against coronavirus were “not predictable”.
The upbeat update is in line with those recently issued by rivals Plus500 (PLUSP.L) and CMC Markets (CMCX.L), both of which have flagged robust trading on the back of the increased volatility. 2020 has been marked by an explosive selloff in financial markets due to the coronavirus outbreak and the more recent oil price war between Saudi Arabia and Russia. The CBOE Volatility index , often dubbed as Wall Street’s fear gauge, hit its highest since the 2008 financial crisis last week.
Reporting by Muvija M in Bengaluru and Sinead Cruise in London; Editing by Shailesh Kuber and Lawrence White