After COVID-19 volatility, GameStop frenzy boosts IG revenue (updated)
11/03/2021 07:38
(Adds details from statement, background on tastytrade deal)
March 11 (Reuters) - Online trading platform IG IGG.L on
Thursday reported a surge in third-quarter revenue despite a
tough comparative, boosted by the retail frenzy in markets this
year that propelled shares in some beaten-down U.S. stocks to
disproportionate levels.
"The Group saw an unprecedented spike in new client demand,
largely in response to heightened news flow relating to certain
listed U.S. stocks," IG said in a statement.
IG said active clients surged 60% to a record of 230,100 in
the quarter, as people stuck at home during COVID-19 lockdowns
tried to make the most of the market action.
The company, which withdrew some of its riskier products
after the retail phenomenon that has come to be dubbed as the
"GameStop" frenzy, said revenue jumped 65% to 230.3 million
pounds for the three months ended Feb. 28.
Last year's revenue had come against the backdrop of a
pandemic-led selloff in financial markets and a crash in oil
prices due to price wars between Saudi Arabia and Russia.
urn:newsml:reuters.com:*:nL4N2BC2M7
The company, which in January announced a $1 billion
purchase of U.S. trading platform tastytrade in North American
expansion, said it expects the deal to close in the first
quarter of fiscal 2022. urn:newsml:reuters.com:*:nL8N2JW2VR
(Reporting by Muvija M and Indranil Sarkar in Bengaluru;
editing by Uttaresh.V)
((Muvija.M@thomsonreuters.com; within UK: +44 20 7542 1810,
outside UK: +91 80 61822698; Twitter: https://twitter.com/muvija_m;))