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.”
