Electronic trading major IG Group Holdings plc (LON:IGG), today issued a revenue update for the three months to 29 February 2024 (“Q3 FY24”).
In the three months to end-February 2024, 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.
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).
Despite materially lower volatility, active clients were down only 4% at 323,100 in Q3 YTD (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).
In July 2023, the Group announced a £250 million share buyback programme which is expected to be substantially completed in the current financial year.
Total Group revenue and adjusted profit before tax for FY24 are anticipated to be in line with current market expectations.