14 March 2024
LEI No: 2138003A5Q1M7ANOUD76
IG GROUP HOLDINGS PLC
Third Quarter
Revenue Update
'Another consecutive record quarter for
tastytrade, combined with a stable active client base across the
Group, delivered a solid revenue performance in the
quarter'
IG Group Holdings plc ("the Group", "the
Company"), today issues its scheduled revenue update for the three
months to 29 February 2024 ("Q3 FY24"), representing the third
quarter of the financial year ending 31 May 2024
("FY24").
Business
performance in Q3
In the period, total revenue of £240.1 million
increased on the second quarter (Q2 FY24: £229.7 million) and was
stable on the prior year (Q3 FY23: £239.3 million) despite the
lowest level of volatility in over five years.
Total revenue
by product (£m)
|
Q3 FY24
|
Q3 FY23
|
Change %
|
OTC derivatives
|
176.9
|
179.4
|
(1%)
|
Exchange traded derivatives
|
53.7
|
52.0
|
3%
|
Stock trading and investments
|
9.5
|
7.9
|
21%
|
Group
|
240.1
|
239.3
|
-
|
Active clients in the quarter were 266,800, up
on the second quarter (Q2 FY24: 263,600) and consistent with the
prior year (Q3 FY23: 268,600). First trades of 18,000 were up on
the second quarter (Q2 FY24: 16,600) and the prior year (Q3 FY23:
17,400).
OTC client income retention normalised in the
mid-point of the long-term typical range.
Total client assets across the business reached
another record high of £10.1 billion (30 November 2023: £9.3
billion) within which client money balances were stable on levels
reported at the end of H1 FY24.
Interest income in the period of £35.2 million
was in line with guidance, of which £19.1 million was generated in
the US.
tastytrade delivered a record quarter of total
revenue of $62.6 million, up 8% on the second quarter (Q2 FY24:
$57.8 million) and 15% on the prior year (Q3 FY23: $54.6 million),
reflecting growth in both trading revenue and interest income. In
GBP, revenue was up 10% to £49.4 million (Q3 FY23: £44.9
million).
Business
performance in Q3 YTD
Performance in the year to date has
demonstrated the benefit of diversification and the high-quality of
our clients, who remained active despite soft market
conditions.
Total revenue
by product (£m)
|
Q3 FY24 YTD
|
Q3 FY23 YTD
|
Change %
|
OTC derivatives
|
529.5
|
602.3
|
(12%)
|
Exchange traded derivatives
|
153.4
|
135.8
|
13%
|
Stock trading and investments
|
29.8
|
20.3
|
47%
|
Group
|
712.7
|
758.4
|
(6%)
|
Total revenue
by portfolio (£m)
|
Q3 FY24 YTD
|
Q3 FY23 YTD
|
Change %
|
Core Markets+
|
545.8
|
606.9
|
(10%)
|
High Potential Markets
|
166.9
|
151.5
|
10%
|
Group
|
712.7
|
758.4
|
(6%)
|
Despite materially lower volatility, active
clients were down only 4% at 323,100 (Q3 FY23 YTD: 335,400). First
trades of 51,800 were down 6% (Q3 FY23 YTD: 54,900).
The Group generated £105.4 million of interest
income in the period (Q3 FY23 YTD: £50.1 million). Within this,
£56.4 million was earned in the US (Q3 FY23 YTD: £32.7
million).
tastytrade delivered another record
performance, with total revenue of $180.4 million in the period, up
24% on the prior year (Q3 FY23 YTD: $146.0 million). In GBP,
revenue was up 17% to £143.7 million (Q3 FY23 YTD: £122.8
million).
Capital return
to shareholders
In July 2023, the Group announced a £250
million share buyback programme which is expected to be
substantially completed in the current financial year.
Guidance and
outlook
Total Group revenue and adjusted profit before
tax for FY24 are anticipated to be in line with current market
expectations.
The Group's next market announcement will be
the full year FY24 results, to be released in July 2024.
Contact
information
IG Group
Investor Relations
|
IG Group
Press
|
FTI
Consulting
|
Martin Price / Simon Wright
|
Angela Warburton
|
Edward Berry / Katherine Bell
|
020 7573 0020 / 0099
|
020 7633 5382
|
07703 330 199 / 079 7687 0961
|
investors@iggroup.com
|
press@ig.com
|
edward.berry@fticonsulting.com
/
katherine.bell@fticonsulting.com
|
Disclaimer - forward-looking statements
This statement, prepared by IG Group
Holdings plc (the "Company"), may contain forward-looking
statements about the Company and its subsidiaries (the "Group").
Such forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes",
"projects", "estimates", "plans", "anticipates", "targets", "aims",
"continues", "expects", "intends", "hopes", "may", "will", "would",
"could" or "should" or, in each case, their negative or other
various or comparable terminology.
Forward-looking statements involve
known and unknown risks, uncertainties, assumptions, and other
factors which are beyond the Company's control and are based on the
Company's beliefs and expectations about future events as of the
date the statements are made. If the assumptions on which the Group
bases its forward-looking statements change, actual results may
differ from those expressed in such statements. There are several
factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements, including those set out under "Principal Risks" in the
Company's annual report for the financial year ended 31 May 2023.
The annual report can be found on the Company's website
(www.iggroup.com).
Forward-looking statements speak
only as of the date they are made. Except as required by applicable
law and regulation, the Company undertakes no obligation to update
these forward-looking statements. Nothing in this statement should
be construed as a profit forecast.
No
offer or solicitation
This announcement is not intended
to, and does not constitute or form any part of, an offer to sell,
or an invitation to purchase or subscribe for any securities, or a
solicitation of any vote or approval in any
jurisdiction.
No
profit forecasts or estimates
No statement in this announcement is
intended as a profit forecast or estimate for any
period.
About IG
IG Group (LSEG:IGG) is a global
fintech company that provides online trading platforms and
educational
resources to empower ambitious
clients around the globe. Established in 1974 and headquartered in
the
UK, IG Group is a FTSE 250 company
that offers clients access to ~19,000 financial markets
worldwide.
For 50 years, the Company has grown
and evolved its technology, product offering, and educational
tools
and content to meet the needs of its
retail and institutional clients. IG Group continues to innovate
its offering
for the next generation of traders
and investors through its market-leading brands: IG, tastytrade, IG
Prime,
Spectrum, and DailyFX.