UK's IG Group cuts 2026 revenue outlook on weaker OTC trading

Oct 2 (Reuters) - British online trading platform IG Group IGG.L cut its 2026 revenue growth forecast on Friday after weak market conditions hurt retention in its over-the-counter (OTC) derivatives business, sending its shares down more than 27%.

• Shares of the FTSE-100 firm were down 23.8% at 975 pence by 0743 GMT, and on track for its worst day since December 2016, if losses persist.

• IG now expects 2026 revenue growth to be in a mid-single-digit percentage range year-on-year, compared with its previous forecast for growth toward the upper end of its mid-to-high single-digit target range.

• The update follows plans announced in September to cut a significant number of jobs as part of a reorganisation aimed at improving efficiency.

• Its third-quarter revenue is expected to be about £240 million ($316.97 million), down roughly 14% year-on-year, as weaker market conditions reduced OTC revenue retention to around 70%.

• The company said it remained confident of meeting its medium-term outlook beyond 2026.

• Shares of peers Plus500 and CMC Markets fell between 7% and 10%.

($1 = 0.7572 pounds)