One of the largest forex and CFDs brokerages in the industry, London Stock Exchange-listed IG Group, has issued a trading update on the company’s performance. The firm stated that its performance is in line with expectations and that despite an increase in marketing spending, the results from the campaigns are positive.
IG Group has been actively increasing its operating costs in the first half of the financial year ending on the 31st of May 2017. The company has been successful at attracting new clients and the higher costs have been offset by rising revenues.
IG Group’s financial results income could well be affected by the depreciation of the British pound during the past couple of quarters. The company is expected to release its financial results for the first six months that ended on the 30th of November 2016 on Tuesday the 24th of January 2017.
The shares of IG Group are currently trading at 842 pence per share, a level that is 5 percent higher than at the start of 2016. Since the beginning of the year, shares of IG Group have been growing steadily, reaching a premium of 20 percent to the opening price on the 1st of January.
Foreign exchange depreciation of the British pound is likely to show a materially different quarterly report from the company this year. Looking from an outside perspective, shares of the company have actually underperformed if we take into account the 15 percent depreciation of sterling against the U.S. dollar as an example.