REG - IG Group Hldgs plc - First Quarter Revenue Update

IG groupAnnouncement

12/09/2024 07:00

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RNS Number : 8526D  IG Group Holdings plc  12 September 2024

12 September 2024

LEI No: 2138003A5Q1M7ANOUD76

IG GROUP HOLDINGS PLC
First Quarter Revenue Update

 

IG Group Holdings plc, today issues 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").

 

Business performance

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).

 Total revenue (£m)             Q1 FY25  Q1 FY24  % Change
 OTC derivatives                208.1    182.7    14%
 Exchange traded derivatives    59.6     49.8     20%
 Stock trading and investments  11.2     10.4     8%
 Total revenue                  278.9    242.9    15%

 

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 our 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).

Capital update

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.

Outlook

The Group continues to expect FY25 performance in line with market
expectations. Consensus can be found on the IG Group investor relations
website (https://www.iggroup.com/investors/analyst-consensus) .

The next scheduled market announcement will be half year FY25 results in
January 2025.

For further information, please contact:

 IG Group Investor Relations        Media
 Martin Price / Adnan Zab           Edward Berry / Katherine Bell
 020 7573 0020 / 020 7633 5310      07703 330 199 / 079 7687 0961
 investors@ig.com                   edward.berry@fticonsulting.com / katherine.bell@fticonsulting.com

 

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 a number of 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 2024. 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.

About IG

IG Group (LSEG:IGG)
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.iggroup.com%2F&data=05%7C01%7CSimon.Wright%40ig.com%7Cfa58780cb4c445598c5a08da3f12df38%7C4b4cca9cedaf42f38e219070c5d9d76b%7C0%7C0%7C637891647530086156%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=ZopP0pt%2Bpil6u7sT7JRD8OjvetOm4sSxJJ%2FDPRvXU2A%3D&reserved=0)
provides online trading platforms and educational resources to empower
ambitious clients around the globe. Headquartered in the UK, IG Group is a
FTSE 250 company that offers clients access to c.19,000 financial markets
worldwide.

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