IG Group (LSE: IGG) reported
a 12% increase in total revenue for the third quarter of fiscal year 2025 (Q3
FY25), reaching £268.0 million as stronger market conditions and an uptick in
active clients drove performance.
IG Group Reports 12%
Revenue Growth in Q3 FY25
Trading
revenue rose 15% compared to the same period last year, totaling £235.3 million
for the quarter ended February 28, 2025. The growth was primarily attributed to
higher revenue per client resulting from improved market conditions across the
company’s product offerings.
“Q3
revenue growth reflected stronger market conditions and an increase in active
clients. New customer acquisition has improved and there is more to do to
ensure stronger, sustained growth,” the company stated in its quarterly
update.
273K of Active Clients
Active
clients across the Group increased 2% year-over-year and 5%
quarter-over-quarter to 272,700, reflecting improved customer acquisition
efforts. First trades increased across all product categories compared to both
prior periods, with the company citing stronger market conditions, improved
product offerings, effective promotions, and increased marketing investment as
key drivers.
OTC
derivatives, IG’s largest revenue segment, generated £185.9 million in revenue,
up 14% from the previous year and 12% from the prior quarter. Exchange traded
derivatives saw an 18% year-over-year (YoY) increase to £41.7 million, while
stock trading and investments revenue jumped 32% to £7.7 million.
Record Revenue for
tastytrade
The
company’s U.S.-based tastytrade business performed particularly well, with
trading revenue reaching a record $50.9 million, representing a 30% increase
from the previous year.
“On a reported GBP
basis, trading revenue increased 32% on the prior year and 22% on the prior
quarter to £40.8 million (Q3 FY24: £30.9 million; Q2 FY25: £33.4 million),” the company
commented.
Net
interest income was the only segment to decline, falling 7% year-over-year to
£32.7 million, which the company attributed to lower interest rates while
client money balances remained stable at £3.8 billion.
Year-to-Date Performance
and Outlook
For the
first nine months of fiscal 2025, IG Group reported total revenue of £790.5
million, an 11% increase from the same period in the previous year. Active
clients for this period rose 2% to 328,000.
The company
expressed confidence in meeting consensus expectations for total revenue and
adjusted profit before tax for the full fiscal year, citing Q3 results and
continuing stronger market conditions in Q4.
“The Group
remains confident of meeting FY25 consensus total revenue and adjusted profit
before tax expectations,” IG concluded.
Freetrade, Share Buyback
and More
IG Group
announced that it has received key antitrust and change in control approvals
for its acquisition of Freetrade, which is now expected to close in April 2025,
earlier than initially anticipated. The company noted that Freetrade has
continued to perform in line with expectations.
The Group
also extended its current share buyback program by £50 million to £200 million,
to be completed in fiscal year 2025. As of March 11, 2.3 million shares had
been repurchased at a cost of £21.7 million.
Additionally,
IG Group plans to seek shareholder and regulatory approval to reduce its share
premium account and merger reserve, which would increase distributable reserves
and enhance flexibility for growth investments and capital returns to
shareholders.
IG Group (LSE: IGG) reported
a 12% increase in total revenue for the third quarter of fiscal year 2025 (Q3
FY25), reaching £268.0 million as stronger market conditions and an uptick in
active clients drove performance.
IG Group Reports 12%
Revenue Growth in Q3 FY25
Trading
revenue rose 15% compared to the same period last year, totaling £235.3 million
for the quarter ended February 28, 2025. The growth was primarily attributed to
higher revenue per client resulting from improved market conditions across the
company’s product offerings.
“Q3
revenue growth reflected stronger market conditions and an increase in active
clients. New customer acquisition has improved and there is more to do to
ensure stronger, sustained growth,” the company stated in its quarterly
update.
273K of Active Clients
Active
clients across the Group increased 2% year-over-year and 5%
quarter-over-quarter to 272,700, reflecting improved customer acquisition
efforts. First trades increased across all product categories compared to both
prior periods, with the company citing stronger market conditions, improved
product offerings, effective promotions, and increased marketing investment as
key drivers.
OTC
derivatives, IG’s largest revenue segment, generated £185.9 million in revenue,
up 14% from the previous year and 12% from the prior quarter. Exchange traded
derivatives saw an 18% year-over-year (YoY) increase to £41.7 million, while
stock trading and investments revenue jumped 32% to £7.7 million.
Record Revenue for
tastytrade
The
company’s U.S.-based tastytrade business performed particularly well, with
trading revenue reaching a record $50.9 million, representing a 30% increase
from the previous year.
“On a reported GBP
basis, trading revenue increased 32% on the prior year and 22% on the prior
quarter to £40.8 million (Q3 FY24: £30.9 million; Q2 FY25: £33.4 million),” the company
commented.
Net
interest income was the only segment to decline, falling 7% year-over-year to
£32.7 million, which the company attributed to lower interest rates while
client money balances remained stable at £3.8 billion.
Year-to-Date Performance
and Outlook
For the
first nine months of fiscal 2025, IG Group reported total revenue of £790.5
million, an 11% increase from the same period in the previous year. Active
clients for this period rose 2% to 328,000.
The company
expressed confidence in meeting consensus expectations for total revenue and
adjusted profit before tax for the full fiscal year, citing Q3 results and
continuing stronger market conditions in Q4.
“The Group
remains confident of meeting FY25 consensus total revenue and adjusted profit
before tax expectations,” IG concluded.
Freetrade, Share Buyback
and More
IG Group
announced that it has received key antitrust and change in control approvals
for its acquisition of Freetrade, which is now expected to close in April 2025,
earlier than initially anticipated. The company noted that Freetrade has
continued to perform in line with expectations.
The Group
also extended its current share buyback program by £50 million to £200 million,
to be completed in fiscal year 2025. As of March 11, 2.3 million shares had
been repurchased at a cost of £21.7 million.
Additionally,
IG Group plans to seek shareholder and regulatory approval to reduce its share
premium account and merger reserve, which would increase distributable reserves
and enhance flexibility for growth investments and capital returns to
shareholders.
This post is originally published on FINANCEMAGNATES.
