IG Group reports £257.2 million revenue for Dec-Feb quarter

abdelaziz Fathi

Spread betting and CFDs broker IG Group plc has today released its financial results for the third quarter of the fiscal year ending on February 28, 2022.

The UK online trading leader said high levels of trading activity among clients helped grow revenue 13 percent year-on-year. The revenue figure was reported at £257.2 million for the third quarter of the FY22 compared to £226.7 million in the comparable three months a year ago. IG said that this growth in revenue came despite a very challenging comparative period which included the extraordinary ‘meme stock’ related volatility.

Out of these figure, tastytrade contributed £28.4 million in Q3 revenues, up 5 percent on a yearly basis. Alongside that, Spectrum revenue also grew 89 percent on the prior year period as volumes on the exchange increased.

IG Group pointed out to strong customer growth despite lower levels of new client acquisition compared to the exceptional metrics seen throughout the previous year. Specifically, total active clients increased to an all-time high of 292,200 from 220,900 in the Q3 FY21. Some 25,600 new clients placed their first trade in the quarter, down 33 percent year-on-year from 37,600. However, the figure continued to be significantly higher than the pre-pandemic quarterly average of 13,200.

IG’s year-to-date revenue from continuing operations was £729.1 million. Excluding the foreign exchange hedging gain in Q1 associated with the financing of the tastytrade acquisition, adjusted net trading revenue was £723.3 million, up 14 percent from £635.3 million in the prior year period.

Active clients were also higher 33 percent to 354,400. On a quarterly scale, Q3 YTD adjusted net trading revenue marked a 3 percent increase with active clients up 1 percent, demonstrating further growth in the post-pandemic period.

IG reports flat growth in core markets

Other business highlights show that over-the-counter (OTC) leveraged revenue rose by 4 percent year-on-year to £219 million, while exchange traded derivatives jumped to £31 million from less than £2 million the previous year. Stock trading and investments revenue decreased year-on-year by 54 percent, although active clients reached record levels.

The FTSE 250-listed group described the performance of its OTC business as excellent across all regions while reflecting, in particular, increased trading in commodities and indices. The UK and EU reported their highest quarterly revenue since Q4 FY20, which represented the peak of the pandemic-related trading activity. Its Japanese unit also delivered another consecutive quarter of growth with record levels of revenue and active clients.

IG Group also noted that the revenue generated in its core markets – countries regulated by the European Securities and Markets Authority, Australia, Singapore, Switzerland, Dubai and South Africa – amounted to £222.0 million. This figure was marginally ahead of the £221.7 million it booked in the Q3 2021. Additionally, revenue in the high potential markets segment was £35.2 million, up 9 percent from £32.1 million a year earlier.

June Felix, the Chief Executive Officer at IG Group, comments: “I’m delighted to be reporting another quarter of outstanding performance driven by a record number of clients trading in the period. Today, we have more clients and a broader range of products to trade than ever before in our history. But we aren’t stopping here – a new IG is emerging, and we’re excited by the opportunities ahead of us, building on our strengths and track record of delivery.”

Read this next

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.

Digital Assets

WunderTrading brings automated crypto trading to United States

“Among developed countries, Americans are the heaviest users of cryptocurrencies, with 13% having invested in cryptocurrencies over the past year.”

Retail FX

ACY Securities sponsors child safety and family welfare charity Barnardos Australia

Sponsoring Barnardos will give ACY Securities and its employees an opportunity to do volunteer work through different outreach programs.