IG GROUP REPORTS REVENUE OF £257.2 MILLION FOR THE DEC-FEB QUARTER

IG Group plc, a spread betting and CFDs broker has revealed its financial results for the third quarter of its fiscal year, which ends on February 28, 2022.

The UK's leading online trading company reported that strong levels of trading activity among customers contributed to a 13 percent increase in revenue year on year. The revenue number for the third quarter of FY22 was reported as £257.2 million, up from £226.7 million in the same period last year. According to IG, this revenue rise occurred amid an extremely hard comparison period that featured unusual meme stock volatility.

Tastytrade generated £28.4 million in Q3 revenue, a 5 percent increase year on year. In addition, Spectrum's income surged by 89 percent year on year as exchange volumes increased.

IG Group reported significant customer growth despite lower levels of new client acquisition compared to the prior year's extraordinary figures. Total active customers grew to an all-time high of 292,200 in Q3 FY21, up from 220,900. In the third quarter, 25,600 new customers made their first transaction, a decrease of 33% from 37,600 in the previous year. The amount, however, remained much higher than the pre-pandemic quarterly average of 13,200.

IG's revenue from ongoing activities for the year to far was £729.1 million. Adjusted net trading revenue was £723.3 million, up 14 percent from £635.3 million in the prior-year quarter, excluding the foreign currency hedging gain connected with the financing of the tastytrade acquisition in Q1.

The number of active customers increased by 33% to 354,400. Every quarter, Q3 YTD adjusted net trading revenue increased by 3%, while active customers increased by 1%, indicating continued growth in the post-pandemic era.

In the main markets, IG sees flat growth.

Other business highlights include a 4% increase in over-the-counter (OTC) leveraged revenue to £219 million years on year, and an increase in exchange-traded derivatives revenue to £31 million from less than £2 million the prior year. Revenue from stock trading and investments fell by 54% year on year, despite record numbers of active customers.

The FTSE 250-listed company rated its OTC business as “outstanding” across all areas, with increasing trading in commodities and indices in particular. The UK and EU recorded their biggest quarterly revenue since Q4 FY20 when pandemic-related trade activity was at its height. Its Japanese subsidiary also produced another straight quarter of growth, with revenue and active customers at all-time highs.

IG Group also said that income from its key markets – nations regulated by the European Securities and Markets Authority, Australia, Singapore, Switzerland, Dubai, and South Africa – totaled £222.0 million. This sum was somewhat higher than the £221.7 million it earned in the third quarter of 2021. Furthermore, sales in the high potential markets sector were £35.2 million, a 9 percent increase from £32.1 million the previous year.

“I'm happy to be announcing another quarter of great success driven by a record number of customers trading in the time,” says June Felix, Chief Executive Officer of IG Group. We now have more customers and a wider selection of things to trade than at any other time in our history. But we're not stopping there - a new IG is on the way, and we're enthusiastic about the potential ahead of us as we build on our strengths and track record of success.