Third Quarter Revenue Update

IG Group Holdings plc

14 March 2024

 

14 March 2024

LEI No: 2138003A5Q1M7ANOUD76

IG GROUP HOLDINGS PLC

Third Quarter Revenue Update

'Another consecutive record quarter for tastytrade, combined with a stable active client base across the Group, delivered a solid revenue performance in the quarter'

IG Group Holdings plc ("the Group", "the Company"), today issues its scheduled revenue update for the three months to 29 February 2024 ("Q3 FY24"), representing the third quarter of the financial year ending 31 May 2024 ("FY24").

Business performance in Q3

In the period, total revenue of £240.1 million increased on the second quarter (Q2 FY24: £229.7 million) and was stable on the prior year (Q3 FY23: £239.3 million) despite the lowest level of volatility in over five years.

Total revenue by product (£m)	Q3 FY24	Q3 FY23	Change %
OTC derivatives	176.9	179.4	(1%)
Exchange traded derivatives	53.7	52.0	3%
Stock trading and investments	9.5	7.9	21%
Group	240.1	239.3	-

Active clients in the quarter were 266,800, up on the second quarter (Q2 FY24: 263,600) and consistent with the prior year (Q3 FY23: 268,600). First trades of 18,000 were up on the second quarter (Q2 FY24: 16,600) and the prior year (Q3 FY23: 17,400).

OTC client income retention normalised in the mid-point of the long-term typical range.

Total client assets across the business reached another record high of £10.1 billion (30 November 2023: £9.3 billion) within which client money balances were stable on levels reported at the end of H1 FY24.

Interest income in the period of £35.2 million was in line with guidance, of which £19.1 million was generated in the US.

tastytrade delivered a record quarter of total revenue of $62.6 million, up 8% on the second quarter (Q2 FY24: $57.8 million) and 15% on the prior year (Q3 FY23: $54.6 million), reflecting growth in both trading revenue and interest income. In GBP, revenue was up 10% to £49.4 million (Q3 FY23: £44.9 million).

Business performance in Q3 YTD

Performance in the year to date has demonstrated the benefit of diversification and the high-quality of our clients, who remained active despite soft market conditions.

Total revenue by product (£m)	Q3 FY24 YTD	Q3 FY23 YTD	Change %
OTC derivatives	529.5	602.3	(12%)
Exchange traded derivatives	153.4	135.8	13%
Stock trading and investments	29.8	20.3	47%
Group	712.7	758.4	(6%)

Total revenue by portfolio (£m)	Q3 FY24 YTD	Q3 FY23 YTD	Change %
Core Markets+	545.8	606.9	(10%)
High Potential Markets	166.9	151.5	10%
Group	712.7	758.4	(6%)

Despite materially lower volatility, active clients were down only 4% at 323,100 (Q3 FY23 YTD: 335,400). First trades of 51,800 were down 6% (Q3 FY23 YTD: 54,900).

The Group generated £105.4 million of interest income in the period (Q3 FY23 YTD: £50.1 million). Within this, £56.4 million was earned in the US (Q3 FY23 YTD: £32.7 million).

tastytrade delivered another record performance, with total revenue of $180.4 million in the period, up 24% on the prior year (Q3 FY23 YTD: $146.0 million). In GBP, revenue was up 17% to £143.7 million (Q3 FY23 YTD: £122.8 million).

Capital return to shareholders

In July 2023, the Group announced a £250 million share buyback programme which is expected to be substantially completed in the current financial year.

Guidance and outlook

Total Group revenue and adjusted profit before tax for FY24 are anticipated to be in line with current market expectations.

The Group's next market announcement will be the full year FY24 results, to be released in July 2024.

Contact information

IG Group Investor Relations	IG Group Press	FTI Consulting
Martin Price / Simon Wright	Angela Warburton	Edward Berry / Katherine Bell
020 7573 0020 / 0099	020 7633 5382	07703 330 199 / 079 7687 0961
[e-mail]	[e-mail]	[e-mail]  / [e-mail]

Disclaimer - forward-looking statements

This statement, prepared by IG Group Holdings plc (the "Company"), may contain forward-looking statements about the Company and its subsidiaries (the "Group"). Such forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "projects", "estimates", "plans", "anticipates", "targets", "aims", "continues", "expects", "intends", "hopes", "may", "will", "would", "could" or "should" or, in each case, their negative or other various or comparable terminology.

Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors which are beyond the Company's control and are based on the Company's beliefs and expectations about future events as of the date the statements are made. If the assumptions on which the Group bases its forward-looking statements change, actual results may differ from those expressed in such statements. There are several factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including those set out under "Principal Risks" in the Company's annual report for the financial year ended 31 May 2023. The annual report can be found on the Company's website (www.iggroup.com).

Forward-looking statements speak only as of the date they are made. Except as required by applicable law and regulation, the Company undertakes no obligation to update these forward-looking statements. Nothing in this statement should be construed as a profit forecast.

No offer or solicitation

This announcement is not intended to, and does not constitute or form any part of, an offer to sell, or an invitation to purchase or subscribe for any securities, or a solicitation of any vote or approval in any jurisdiction.

No profit forecasts or estimates

No statement in this announcement is intended as a profit forecast or estimate for any period.

About IG

IG Group (LSEG:IGG) is a global fintech company that provides online trading platforms and educational

resources to empower ambitious clients around the globe. Established in 1974 and headquartered in the

UK, IG Group is a FTSE 250 company that offers clients access to ~19,000 financial markets worldwide.

For 50 years, the Company has grown and evolved its technology, product offering, and educational tools

and content to meet the needs of its retail and institutional clients. IG Group continues to innovate its offering

for the next generation of traders and investors through its market-leading brands: IG, tastytrade, IG Prime,

Spectrum, and DailyFX.

 

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