(Reuters) - British online financial trading company IG Group Holdings' (L:IGG) full-year pretax profit rose 3 percent, beating analysts' estimates, as an expanding client base helped it grow revenue despite quiet markets.
The company, which provides online stockbroking and trading services to retail investors, also said on Tuesday it had made good progress in getting regulatory approval for a subsidiary based in the European Union as it prepares for Britain's exit from the bloc.
Shares in the company, which did not say where its EU subsidiary would be located, has risen 7.6 percent to 597 pence by 0807 GMT, the second-biggest gainer on the FTSE Midcap Index (FTMC).
Founded in 1974 as the world's first spread-betting company, IG Group is now in the early stages of exploring further opportunities outside the EU, it said.
IG reported a 3 percent rise in pretax profit for the year ended May to 213.7 million pounds, beating company compiled consensus estimates of 211.7 million pounds, based on five analysts, in a year it called one of the least volatile in financial markets for decades.
Markets were volatile last year, roiled by global politics, such as U.S. President Donald Trump's victory and Britain's decision to leave the European Union. But markets calmed down after the U.S. election in November.
Full-year net trading revenue rose 8 percent to 491.1 million pounds, IG said. Its client base increased 18 percent in the year to 186,000.
Revenue in Britain, its largest market, rose marginally to 223 million pounds, while in Europe, Middle East and Africa it rose 17 percent to 137.5 million pounds.
Britain, due to its large client base responds more to volatility, both negatively and positively, IG said.
Quiet markets around the Brexit vote and the U.S. Presidential election and a higher number of clients meant that average revenue per client was down by 7 percent to 3,446 pounds, it said.
The company said it would pay a final dividend of 22.88 pence per share, taking its full-year payout 2.9 percent higher to 32.3 pence per share.