Electronic trading major IG Group Holdings plc (LON:IGG) today issued its scheduled revenue update for the three months to 31 August 2024 (“Q1 FY25”), representing the first quarter of the financial year ending 31 May 2025 (“FY25”).
Total revenue of £278.9 million increased 15% year-on-year reflecting higher revenue per client supported by elevated volatility across a range of asset classes in early August. Total active clients across the Group in the quarter were down 1% year-on-year to 263,200 (Q1 FY24: 267,000).
Within total revenue, net interest income was £36.8 million (Q1 FY24: £34.4 million) of which £13.7 million related to OTC derivatives (Q1 FY24: £11.8 million), £18.4 million to exchange traded derivatives (Q1 FY24: £18.0 million) and £4.7 million to stock trading and investments (Q1 FY24: £4.6 million).
Within exchange traded derivatives, tastytrade total revenue increased 18% to $70.8 million (Q1 FY24: $60.0 million); on a reported GBP basis, total revenue increased 17% to £55.0 million (Q1 FY24: £47.1 million). Net trading revenue increased 27% and 26% in USD and GBP, respectively, to $47.1 million (Q1 FY24: $37.1 million) and £36.6 million (Q1 FY24: £29.1 million).
In IG’s US business, client cash balances at the end of the period were $1.9 billion (31 May 2024: $1.9 billion). Outside the US, client cash balances were £2.6 billion (31 May 2024: £2.7 billion).
In July, the Board announced a £150 million share buyback programme which is expected to be completed by 31 January 2025, subject to share price performance and other demands on capital. The first tranche of £75 million completed on 9 September and the second tranche will start shortly.
The Group continues to expect FY25 performance in line with market expectations.
