The spread betting company announced the first half results for the period ended November 30, 2005, showing a 31 per cent increase in turnover up to £38.6 million, while the profit before tax more than trebled at £20.4 million.
In particular, spread betting in the financial markets experienced the highest growth in volumes since 2001, while the sports division achieved good levels of growth in both spread betting and binary betting in a period which contained no major soccer tournament.
Overall the sports businesses revenue was 14% up on the corresponding period last year, a period which included Euro 2004.
“IG has continued to deliver substantial growth in turnover and profits in the first half of the year, underpinned by consistently strong levels of client acquisition and the sustained development of our financial businesses in both the UK and Australia. Current trading is strong and we remain confident about IG\’s prospects,” said Chief Executive Nat le Roux.
The company continues to develop a simplified fixed odds offering, which will appeal to a larger audience than the existing sports products, and the intention is to launch it in good time for this summer\’s soccer World Cup.
“The World Cup is the single most important thing for our sports business … For the first time we\’ll be competing with the main Internet sports bookmakers,” added le Roux.
Le Roux told the Racing Post that despite simplifying the intricacies of sports binary betting had taken longer than expected, the site should be ready for launch in March or April.
He added: “There will be very little horseracing. It’s hard to make money now that Betfair has taken the margin out of the business, but we will offer more in-running bets than anyone else, and we’ll update prices faster.”
Le Roux also revealed that IG has successfully begun market making into the Betdaq betting exchange, in a mutually beneficial relationship where the exchange obtains liquidity in naturally illiquid markets and IG obtains an additional flow of binary business. The company would soon offer the same service to Betfair.
He explained: “By displaying our binary prices on the exchange as well as our website, we get additional volume and the exchange gets proper liquidity for its in-running service. So far it’s been encouraging.”
In separate news, The Sunday Times reported CMC Markets is preparing a float that will value the spread betting firm at between £725m and £800m.
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