The trading industry behemoth, IG Group, has just revealed a modest uptick in its quarterly earnings with a marginal 0.3% year-on-year rise in revenue, touching £240.1m for Q3. The figure barely overshadows the £239.3m reported in the corresponding period of the previous year, reflecting the company’s stabilization in an ever-dynamic market.
IG’s Q3, ending on 29 February 2024, suggested a mixed financial landscape for its various trading services. Over-the-counter (OTC) derivatives, despite being the biggest earner with £176.9m in revenue, saw a 1.4% slip from the previous year’s £179.4m. On the brighter side, exchange-traded derivatives edged up by 2.7%, while stock trading and investments notably surged ahead by 20.3%, totaling £9.5m.
While IG Group did not offer an exhaustive account of its Q3 performance, it laid out certain financial metrics worth noting. Total client assets soared to a record peak of £10.1bn by quarter-end. The Group’s specialty, the tastytrade financial network, enjoyed a buoyant phase with a 10.0% year-on-year revenue increase to £49.4m—setting a new quarterly record fueled by growth in both trading revenue and interest income.
Client engagement metrics showed a slight 0.7% decrease in active clients, who numbered 266,800, but a significant 3.5% jump was registered in first trades, arriving at 18,000 for Q3. Such figures are indicative of the sector’s vibrancy, with new clients showing continued interest despite minor fluctuations in active client numbers.
Considering the year-to-date figures, IG Group witnessed a 6.0% decrease in revenue for the nine months leading up to the end of February, amounting to £712.7m. This was substantially affected by the 12.1% decrease in OTC derivatives revenue. Concurrently, exchange-traded derivatives and stock trading and investments countered the trend, with revenues rising 13.0% to £153.4m and spiraling 46.8% to £29.8m, respectively.
A closer look at revenue by portfolio showed a slight 10.1% decline in core markets, which pulled in £545.8m. However, highlighting IG Group’s strategic expansion, revenues in high potential markets rose by 10.2% to £166.9m.
Tastytrade continued its growth trajectory with another high-performance mark, generating £143.7m in revenue, a 17.0% increase from the preceding year’s £122.8m. Despite lower market volatility, the platform experienced a marginal 3.7% dip in active clients totaling 323,100, and first trades fell by 5.7% to 51,800.
Anticipation now builds towards July 2024, when IG Group will disclose its full-year results. Predictions remain optimistic with the expected total revenue and adjusted profit before tax likely adhering to prior forecasts.
Amid these financial disclosures, IG Group also cast light upon the upcoming exits of two key executives. Chief Financial Officer (CFO) and interim Chief Executive Officer (CEO), Charlie Rozes, will serve until the end of July to pave the way for a smooth executive transition. His impressive contributions as CFO and acting CEO, including bridging the gap after June Felix stepped down as CEO, have been invaluable. Breon Corcoran, the former Paddy Power Betfair CEO, succeeded Rozes in January as the new CEO.
IG Group is also bidding farewell to Chief Operating Officer (COO) Jon Noble, effective immediately, although he will linger briefly for an orderly handover. His tenure started in 2000, amplifying his board presence since 2018.
IG Group Chairman Mike McTighe expressed gratitude for both executives’ tenures. McTighe hailed Rozes’ formidable part in the company’s growth and commended Noble for his pivotal role in establishing IG as an industry trailblazer. As they embark on new journeys, their departure is met with well-wishes for future endeavors.
The Group now awaits the announcement of their successors, all while continuing to bolster their position in the financial trading sphere as they navigate these upper-level management transitions.
