StockMarketWire.com - Brokerage IG Group first-half pre-tax profit fell 17% as a regulatory clampdown on derivative products stifled trading revenues.

For the six months ended 30 November, pre-tax profit fell 17% to £113.0m and revenue fell 6% to £251.0m.

The company's saw a decline in new OTC leveraged clients to 14,626 for the half from 18,027 a year earlier as a result regulatory measures, which came into effect during the half.

Operating profit fell 18% to £112.5m and earnings fell to 24.9p a share, down 16% from 29.5p a year earlier.

An interim dividend of 12.96p per share was declared.

The company reiterated that revenue in 2019 would be lower than in 2018, reflecting 'the impact of the ESMA measures, and the exceptional performance in the second half of 2018 when revenue was boosted by the heightened level of interest in cryptocurrencies.'

Total operating costs in 2019 would be at 'a similar level to the £290 million total operating costs in 2018, it added.

'I am confident that the Company will, as previously guided, return to growth after FY19. The Board reiterates that we expect to maintain the 43.2p per share annual dividend until the Group's earnings allow the Company to resume progressive dividends,' said June Felix, Chief Executive, commented.


At 8:29am: [LON:IGG] IG Group Holdings PLC share price was -68.25p at 572.75p



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