IG Group Holdings plc has released its revenue update for the Q3 of FY24, covering the period up to 29th February 2024.

During this quarter, IG Group reported total revenue of £240.1 million, marking an increase from the second quarter (£229.7 million) and maintaining stability compared to the same period last year (£239.3 million). This was achieved despite experiencing the lowest level of volatility in over five years.

The company noted a rise in active clients, reaching 266,800, up from the previous quarter (263,600) and remaining consistent with the figures from the same quarter of the previous year (268,600). First trades also showed an increase, totaling 18,000, compared to 16,600 in the previous quarter and 17,400 in the same quarter last year.

OTC client income retention normalized within the typical long-term range, while total client assets soared to a record high of £10.1 billion, up from £9.3 billion reported at the end of the previous fiscal year. Client money balances remained stable compared to the levels reported at the end of the first half of fiscal year 2024.

IG Group Q3 FY24: Revenue Stable Despite Low Volatility

Interest income for the period amounted to £35.2 million, meeting the company’s guidance, with £19.1 million generated in the US market.

Additionally, tastytrade, a subsidiary of IG Group, achieved a record quarter with a total revenue of $62.6 million, reflecting an 8% increase from the previous quarter and a 15% increase from the same period last year. This growth was because of the increased trading revenue and interest income. In GBP, revenue for tastytrade rose by 10% to £49.4 million compared to the same quarter last year.

Despite lower volatility, active clients for tastytrade were down by only 4% at 323,100, compared to the same period last year. First trades also experienced a slight decline of 6%, totaling 51,800.

IG Group reported interest income of £105.4 million for the period, significantly higher than the same period last year (£50.1 million), with £56.4 million generated in the US market.

Furthermore, tastytrade continued its strong performance, reporting total revenue of $180.4 million for the fiscal year up to date, marking a 24% increase from the same period last year. In GBP, revenue for tastytrade rose by 17% to £143.7 million compared to the same period last year.

The Group also provided an update on its £250 million share buyback program announced in July 2023, stating that it is expected to be substantially completed in the current financial year.

Overall, IG Group anticipates its total revenue and adjusted profit before tax for the fiscal year 2024 to be in line with current market expectations. 

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