IG Group, a leading finance company, has reported a significant increase in revenue from continuing operations for the three months ending 28 February. The company revealed that revenue amounted to £257.2m, up from £226.7m in the same period the previous year. This growth can be attributed to a rise in client activity, with a record 292,200 active clients during the quarter, representing a 32.3% increase year-on-year.
The breakdown of IG Group’s performance shows that revenue from over-the-counter (OTC) leveraged derivatives reached £219.3m, a 4.2% increase compared to the previous year. Exchange-traded derivatives revenue saw a remarkable surge of 1,547.4%, amounting to £31.3m, following the acquisition of Tastytrade, a brokerage and investor education platform, in June of the previous year. However, stock trading and investment revenue experienced a significant decline of 53.9% to £6.6m, despite the high number of active clients.
When analyzing market performance, IG Group reported that revenue from its core markets remained relatively stable at £222.0m, while revenue from high-potential markets saw a substantial increase of 604.0% to £35.2m due to the inclusion of Tastytrade.
For the first nine months of the fiscal year, IG Group’s total revenue was 13.9% higher than the previous year, reaching £723.3m. OTC leveraged derivatives revenue experienced a slight growth of 2.0% to £611.9m, while exchange-traded derivatives revenue skyrocketed by 1,432.8% to £88.9m. However, stock trading and investment revenue declined by 24.2% to £22.5m. Core markets revenue improved marginally from £621.1m to £623.1m, and high-potential markets revenue increased significantly by 605.6% to £100.2m.
Looking ahead, IG Group anticipates its group revenue to exceed current market expectations. The company’s core markets segment is well-positioned, benefiting from consecutive quarters of revenue growth and its largest ever active client base. However, growth in revenue from Tastytrade may be lower than previously projected for the fiscal year 2022, depending on market activity. Nevertheless, IG Group remains confident in the opportunities that Tastytrade brings, with its potential for further international expansion and a large addressable market in the US.
IG Group CEO June Felix expressed her satisfaction with the company’s performance, highlighting the record number of trading clients and emphasizing that a new era for IG Group is emerging. She also acknowledged the contributions of the company’s staff and expressed support for those affected by the conflict in Ukraine. IG Group will provide further updates with its full-year results in July.
