IG Group, still looking for volatility

A while back I posted that spread betting provider IG Group seemed to be a company that needed volatile markets to help it go forward (IG Group, a company that needs volatility), today we see more evidence to back this up.

Revenue in the period was £169m, 14% lower than the prior year's. Sales for the second quarter, at £87.5m, were 7% higher than in the first quarter although still 9% behind the prior year. 

The group said the performance reflected the particularly tough comparators which the group faced due to extreme levels of volatility in financial markets in 2011 and the continuing subdued markets which were impacting client activity currently. 

During the period the business did respond well to short spells of heightened market activity and continued to grow market share in its biggest markets. 

http://www.digitallook.com/news/20557816/First_half_revenue_falls_at_IG_Group_as_volatility_remains_muted.html?username=&ac=

The chances are that if and when the markets become volatile again, IG and other spread betting companies will probably do well, but what do they offer if it doesn't happen? In the case of IG a decent enough dividend, but they need clients to want to trade and subdued markets seem to dampen that. The unfortunate thing for spread bettors however, is that while they may well crave volatility most of them are probably going to lose if it happens.