IGG – Pre Close Trading Update

StockRank 94, Q96, V61, M79, Adventurous Super Stock

Following a strong first quarter, IG continued to perform well in the second quarter. Net trading revenue in the first half is expected to be around 9% higher than in the same period a year ago.

Operating costs excluding variable remuneration in the first half of FY18 are expected to be around 7% lower than in the same period a year ago, primarily reflecting a lower level of advertising and marketing spend. IG maintains the guidance given in July that operating costs excluding variable remuneration for the full year are expected to remain at a similar level to FY17.

As previously noted, the nature and timing of potential regulatory changes in the UK and some other key markets for the Group remain uncertain. The Company continues to implement measures to differentiate itself further within the OTC leveraged derivatives industry and to protect the business from regulatory change. It remains difficult, however, to predict what impact regulatory change may have on the Group this financial year and beyond.

Opinion

Seems to be priced in at the moment, or at least price pausing until we hear more of the regulatory changes to the UK Leveraged markets.  I believe that IG are best placed to cope with any changes.   Not much growth forecast for this year, but the stock is worth keeping due to the Dividend Yield (fc) of 5%