Delta Index upbeat in face of potential double trouble
IRISH spread betting firm Delta Index has insisted its business model remains robust despite the two threats of new European legislation and increasingly risk-averse investors.
The comments, from Delta Index's joint managing director Conor O'Neill, came as fresh accounts revealed a 23pc fall in the company's revenue last year amid "challenging" conditions.
Delta is looking abroad for future growth, actively targeting the €400m spread-betting market in Germany and the UK and mulling over pilot launches in Italy and Spain.
Commenting on last year's performance, which also included a loss of almost €640,000 on revenues of just over €2.7m, Mr O'Neill rejected suggestions that the market for complex products like derivatives had been killed off by the financial collapse.
"Absolutely not," he said, shrugging off the threat of potentially stifling European legislation by pointing to the robust share price performance of spread betting peer Id Index.
Mr O'Neill also pointed out that spread betting, which allows investors to take a punt on whether shares go up or down, was well-positioned to thrive in today's markets since investors can benefit from falling prices.
The 2009 figures show how badly some of these punts backfired, however, with Delta Index booking €190,000 worth of impairment charges, about three times the level booked the previous year.