Spread betting and CFDs broker IG Group has reported a 15% increase in revenue for the first quarter of its financial year, ending on August 31, 2024, driven by higher revenue per client amid market volatility in early August.
The online trading platform’s total revenue reached £278.9 million for the three-month period, compared to £242.9 million in the same quarter last year. The increase was supported by a surge in revenue from exchange-traded derivatives and over-the-counter (OTC) derivatives.
IG’s revenue from OTC derivatives rose 14% to £208.1 million, while exchange-traded derivatives saw a 20% jump to £59.6 million. Revenue from stock trading and investments increased by 8% to £11.2 million.
IG Group’s net interest income for the period was £36.8 million, up from £34.4 million a year earlier. The company’s exchange-traded derivatives arm, tastytrade, reported an 18% revenue increase to $70.8 million, or a 17% rise in GBP terms to £55.0 million.
Meanwhile, the group’s total active clients were slightly down by 1% year-on-year, totaling 263,200, compared to 267,000 in the same period last year.
In July, IG Group announced a £150 million share buyback program, with the first tranche of £75 million completed on September 9. The second tranche is set to kick off shortly, with the full buyback expected to conclude by January 31, 2025, contingent on share price performance and other capital demands.
Client cash balances in the U.S. were stable at $1.9 billion as of August 31, with balances outside the U.S. slightly lower at £2.6 billion, down from £2.7 billion at the end of May.
IG Group reiterated its guidance for net operating income of £320-360 million for FY25, based on a cost base of £225 million.
Earlier in July, IG Group reported that its total revenue for the fiscal year 2024 fell 3% to £987.3 million from £1,022.6 million in FY23. Net trading revenue declined 10% to £844.9 million due to reduced trading activity.
The UK online trading leader attributed its lackluster performance to materially lower market volatility across a range of asset classes.
IG Group’s operational highlights for the period include a plan to cut around 300 jobs, roughly 10% of its total workforce as of the end of the financial year.
The FTSE 250-listed firm also confirmed the appointment of Breon Corcoran as Chief Executive Officer, effective from 29 January 2024.
