IG Group Holdings has released its revenue update for the three months ending 31 August 2024 (“Q1 FY25”), marking the first quarter of its financial year ending 31 May 2025 (“FY25”). The company reported a total revenue of £278.9 million for the quarter, reflecting a 15% increase compared to the same period last year. This growth is attributed to higher revenue per client, driven by heightened volatility across various asset classes in early August.

Despite this revenue growth, the number of total active clients decreased by 1% year-on-year, totaling 263,200 compared to 267,000 in Q1 FY24.

Breaking down the revenue components, net interest income for the quarter was £36.8 million, up from £34.4 million in Q1 FY24. This includes £13.7 million from OTC derivatives (up from £11.8 million), £18.4 million from exchange-traded derivatives (up from £18.0 million), and £4.7 million from stock trading and investments (up from £4.6 million).

IG Group Holdings Sees Strong Q1 FY25 Performance 

The performance of tastytrade, a key component of IG’s exchange-traded derivatives business, showed robust growth. Total revenue for tastytrade increased by 18% to $70.8 million (up from $60.0 million), with net trading revenue rising 27% in USD terms and 26% in GBP terms.

Client cash balances in IG’s US business remained stable at $1.9 billion, while balances outside the US stood at £2.6 billion, a slight decrease from £2.7 billion.

In July, IG announced a £150 million share buyback program, with the first £75 million tranche completed on 9 September. The second tranche will commence soon. The company maintains its forecast for FY25, expecting performance to align with market expectations.

IG Group Holdings plc’s revenue update for Q1 FY25 reflects a solid performance with a notable 15% increase in total revenue, driven by heightened market volatility and strong revenue per client. While the number of active clients experienced a slight decline, the company’s diverse revenue streams, including a significant boost from tastytrade, underscore its robust operational health. The stable client cash balances and the ongoing £150 million share buyback program further highlight IG’s commitment to delivering value to shareholders.

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