IG Group beats prediction to hit EBITDA up 34%.

IG Group’s earning before interest tax depreciation and amortisation (EBITDA) is up by more than a third, the spread betting company’s half-year results reveal.

The results for the 6-month period to end 30 November 2009 showed EBITDA up 34% at £81m (€93.9m, $134.6m), from £60.2m in the same period in 2008, beating the 32% increase that IG predicted in December.

There was strong growth in Australia, continental Europe and Singapore, as well as an increase in its UK customer base of 29%.

The growth reflected a strong EBITDA margin also up from last year, hitting 56.4% from 47.4% 12 months earlier, and trading revenue up 14% to £143.8m, from £126.4m.

Chief executive Tim Howkins said: “IG has again delivered record results with strong growth in both revenue and profits. We continue to experience strong levels of activity and account opening, both in the UK and overseas, where our expansion continues. All our markets have great potential and IG is well positioned to deliver further growth.”

Profit before tax rose by 34% in line with EBITDA to hit £78m, from £58.2.

IG Markets South Africa, a subsidiary, has also reached an agreement to acquire the business and client list of Ideal CFD Financial Services, IG Group revealed in a statement.

• To “spread bet on” IG Group see: IG Group Spread Betting.
• To “spread bet with” see: IG Index.

Risk Warning: Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

The above comments do not constitute investment advice and neither IG Index nor Spread-Betting.org accept any responsibility for any use that may be made of them.

IG Index is Authorised and regulated by the Financial Services Authority, register number 114059.