IG GROUP SHARES FALL 26% AFTER REVENUE FORECAST CUT

IG Group shares fell 26 per cent in early trading on Friday, according to a report by City AM, after the trading platform cut its annual revenue forecast. The stock dropped to 950p, having fallen 23.7 per cent since January. Bloomberg reported separately that the fall was the sharpest in almost a decade for the FTSE 100 company. Third-quarter revenue fell 14 per cent year on year, which IG Group attributed to retaining less of its customers' trading activity as over-the-counter revenue. OTC revenue retention slid to 70 per cent, down from an average of 80 per cent since the measure began in the second half of 2025.

The company now expects full-year revenue growth in "a mid-single-digit per cent range", down from an earlier forecast of 10 to 15 per cent organic growth issued in May, the report said. Earnings before tax are expected to fall to the "low-40s per cent range", compared with 47 per cent in the previous period. Chief executive Breon Corcoran attributed the downgrade to "less supportive market conditions" rather than weaker demand. Organic first trades rose more than 25 per cent and active customer numbers climbed 17 per cent, while income from OTC customers grew 8 per cent.

IG Group's Underdog sports prediction market business saw net revenue more than double to $105m, ahead of what the company called a "seasonally important" fourth quarter. The board said it still expects to meet its medium-term guidance beyond 2026, citing anticipated customer growth from continued investment and higher OTC revenue retention. OTC trading allows customers to trade assets without using a primary stock exchange. No date for full-year results was given in the report.