by Adam Dworak

IG Group Maintains Steady Growth Amid Market Volatility

IG Group Holdings plc, a leading global online trading provider, has reported a steady performance in the third quarter of the financial year ending 31 May 2024 (Q3 FY24), with revenue figures demonstrating resilience despite challenging market conditions.

The company announced total revenue for Q3 FY24 at £240.1 million, a slight increase from the previous quarter’s £229.7 million and maintaining stability compared to £239.3 million in Q3 FY23. This performance is particularly noteworthy given the period experienced the lowest level of market volatility in over five years.

Q3 Business Performance Highlights

The number of active clients during the quarter stood at 266,800, showing a modest increase from Q2 FY24’s 263,600 and aligning closely with the previous year’s figures. Furthermore, IG Group saw an uptick in first trades, reaching 18,000, surpassing both the preceding quarter and year’s numbers.

The company also highlighted the normalization of OTC client income retention within the mid-range of historical averages and reported a record high in total client assets at £10.1 billion.

Interest Income and Tastytrade’s Performance

Interest income for the quarter amounted to £35.2 million, consistent with company guidance, with a significant contribution of £19.1 million from its US operations. Tastytrade, a subsidiary of IG Group, delivered a record quarter with total revenue of $62.6 million, marking significant growth from both the previous quarter and the same period last year.

Year-to-Date Business Review

IG Group’s performance year-to-date underscores the benefits of its diversified business model and the quality of its client base, who remained engaged despite softer market conditions. While active clients saw a slight decrease of 4%, the Group still managed to generate £105.4 million in interest income during the period, a substantial increase from the previous year.

Tastytrade continued its impressive performance with a 24% increase in total revenue compared to the prior year, emphasizing the subsidiary’s contribution to the Group’s overall success.

In line with its commitment to shareholder value, IG Group announced a £250 million share buyback programme in July 2023, with expectations to complete it substantially within the current financial year.

Forward-Looking Statements

Looking ahead, IG Group anticipates total revenue and adjusted profit before tax for FY24 to align with current market expectations. The Group is scheduled to release its full-year FY24 results in July 2024, which will provide further insights into its financial health and strategic direction.

Our Comment on the Developments

IG Group’s Q3 FY24 performance illustrates the company’s adeptness in navigating the complexities of the financial markets, showcasing a blend of strategic foresight and operational excellence. The consistent revenue figures amid low market volatility highlight the strength and stability of IG Group’s business model.

With an ongoing commitment to shareholder value and a clear strategic vision, IG Group is well-positioned to continue its trajectory of sustainable growth and innovation in the dynamic online trading landscape.

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