IG Group: Revenue jumps as volatility returns to markets
Trading and investment firm IG Group has reported a 12 per cent jump in total revenue to £268m for the third quarter of its financial year (three months to 28 February 2025), as stronger market conditions and increased client activity drove growth.
Trading revenue rose 15 per cent year-on-year to £235.3m. Trading in over-the-counter (OTC) derivatives such as contracts for difference (CFDs) and spread betting led the gains, up 14 per cent to £185.9m.
Exchange-traded derivatives revenue climbed 18 per cent to £41.7m, while stock trading and investment revenue jumped 32 per cent to £7.7m.
The company said it benefitted from more trading among its key clients with the number of active clients across the group up by two per cent year-on-year to 272,700. The number of traders placing their first trade also rose across all categories.
Tastytrade, IG Group’s US-based brokerage, noted a record performance. The group said the arm’s trading revenue increased 32 per cent on the prior year and 22 per cent on the prior quarter to £40.8m in sterling terms.
However, the group’s net interest income fell seven per cent to £32.7m due to lower interest rates and stable client money balances.
Total IG Group revenue for the nine months reached £790.5m, an 11 per cent increase from the previous year.
“New customer acquisition has improved, and there is more to do to ensure stronger, sustained growth,” the company stated.
On the acquisition front, IG Group confirmed that Freetrade, which it is in the process of acquiring, continued to perform in line with expectations.
Key regulatory approvals had been secured, with the deal now expected to close in April, earlier than anticipated.
Meanwhile, IG Group expanded its share buyback programme by £50m to £200m, with 2.3m shares repurchased as of 11 March at a cost of £21.7m.
The company also outlined plans to seek shareholder and regulatory approval to adjust its capital structure, aiming to increase distributable reserves for future growth and shareholder returns.
IG Group said it remained confident in meeting full-year consensus forecasts for revenue and adjusted profit before tax, due to continued strong market conditions in the fourth quarter.