IG Group reduces headcount as revenues fall
Fewer UK and Australia customers lead to overall revenue decline of 14% year-on-year.
Financial betting operator IG Group has cut and plans to continue to reduce staff headcount amid a 14% year-on-year revenue decline, the company has revealed in its trading update for the six months ended 30 November.
The fall in revenues slowed during the second quarter, with the £87.5m total representing a 9% year-on-year drop, however the operator has pledged to “Continue to take…a disciplined approach to managing the cost base, whilst continuing to invest in developing the business to reinforce its market-leading positions.” No exact numbers were given as to how many staff had left or plan to be made redundant.
IG Group’s revenues from its core UK market were down 15% compared to H1 2011-12, with revenues per client relatively flat but the number of clients down 14% year-on-year. The same was true of Australia, with revenues per client down 2% and active clients down 12% compared to the corresponding period last year.
The company said in a statement: “Historically, revenue has been weighted towards the second half of the year. However, if the levels of client activity seen in the first half persists, revenue in the second half is likely to be similar to that delivered in the first.
“This does not, though, factor in any increase in market activity and if markets do start to provide more attractive opportunities for clients to trade IG remains very well placed to take advantage of this,” it added.