IG Group predicts profit slump as markets, regulation bite

Online financial trading platform IG Group Holdings Plc on Wednesday forecast a sharp fall in full-year net trading revenue and operating profit, saying it was continuing to suffer from low levels of financial market volatility.

May 22 (Reuters) - Online financial trading platform IG Group Holdings Plc IGG.L on Wednesday forecast a sharp fall in full-year net trading revenue and operating profit, saying it was continuing to suffer from low levels of financial market volatility.

The mid-cap company said it expected full-year net trading revenue would fall 17 percent to around 475 million pounds ($603.06 million) from 569 million last year, while operating profit would sink to 190 million pounds from 281 million pounds.

IG and other online traders have been battling an erosion of their client bases due to a clampdown in Britain and the European Union on financial betting.

It said in a separate statement that it expects revenue to jump 30% in fiscal 2022 compared to the current year as it laid out an update to its strategy.

($1 = 0.7876 pounds)

(Reporting by Muvija M in Bengaluru; editing by Patrick Graham)

((Muvija.M@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 3638; Reuters Messaging: muvija.m.thomsonreuters.com@reuters.net))

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