Spread betters pick out IG for profits

Spread betting firm IG Group today said an increase in British gamblers in the six months to December helped pre-tax profit rise 34 per cent to £78 million.

IG is opening a "representative office" in Beijing, which it said would not make money because of China's ban on gambling but was a "low-cost first step" into an important future market. IG is paying shareholders a 5p interim dividend, 25 per cent higher than the same time last year.

The firm, which takes spread bets on financial markets and sporting events, had an adjusted pre-tax profit of £78 million in the six months to 30 November, up from £58.2 million pounds a year earlier, the company said. It said in a trading statement last month that it expected a first-half profit of £77 million.

IG was also helped by the non-recurrence of bad debts it incurred in 2008 as high-rolling clients racked up big losses they could not repay during the global banking crisis.