September 19, 2019 / 7:51 AM / a month ago

UPDATE 1-IG Group points to recovery as trading activity improves

(Adds details on results, interim chairman, shares)

Sept 19 (Reuters) - Online trading platform IG Group said on Thursday it added more clients and saw improved trading activity in August, signalling a recovery from the impact of tighter trading rules that have weighed on the sector.

The group’s shares rose 6% after the trading update, where the company also reiterated its forecast of returning to revenue growth in its fiscal year 2020.

IG, like rivals Plus500 and CMC Markets, have been struggling after regulators tightened rules on platforms that allowed anyone with a bank card to make highly leveraged bets on markets via easily accessible mobile phone apps.

The company, however, reported quarterly revenue that was in line with the same period a year earlier, partly hit by restrictions on the sale of some derivative trading products by the European Union’s securities watchdog.

In a separate statement, IG said it had identified a preferred candidate to succeed Andy Green as chairman, and named non-Executive Director Jonathan Moulds to the role on an interim basis.

The company continues to target revenue growth for its core business of around 3-5% per annum over the medium term.

Revenue for the three months ended Aug. 31 came in at 129.1 million pounds ($160.90 million), compared with 128.9 million pounds a year earlier.

$1 = 0.8024 pounds Reporting by Yadarisa Shabong in Bengaluru, Editing by Sherry Jacob-Phillips and Saumyadeb Chakrabarty

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