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IG Group Holdings PLC on Thursday said its total revenue increased in its first quarter despite a drop in income from over-the-counter derivatives, and that it expects to achieve its medium-term targets.
The London-based contracts-for-difference trading platform said total revenue for the three months ended August 31, the first quarter of the year ending May 31, 2024, increased 0.5% to £242.9 million from £241.8 million the year before.
Revenue from OTC derivatives decreased 8.2% to £182.7 million from £199.0 million. This was offset by revenue from exchange-traded derivatives which increased 37% to £49.8 million from £36.4 million, and from stock trades and investments which increased 61% to £10.4 million from £6.4 million. IG said this ‘reflected the benefits of [the] business diversification’ it had undertaken in recent years.
IG said its net interest income portion of revenue during the quarter was £34.4 million, up from £7.1 million.
Revenue from IG’s Core Markets+ portfolio decreased 6% to £188.7 million from £200.3 million due to ‘softer market conditions,’ but from its High Potential Markets Portfolio increased 30% to £54.2 million from £41.5 million.
Total active clients meanwhile decreased 4.3% to 267,000 from 279,000 but IG said this was ‘a resilient performance reflecting the quality of our clients and our ability to engage and retain client cohorts through superior technology, trade execution, and overall customer service.’
As of September 12, IG said it has repurchased approximately 5.9 million shares for £39.6 million, under its £250 million buyback programme announced in July. It expects to complete the programme’s first £100 million tranche on or before December 12.
Going forward, IG said it ‘remains confident’ that it will meet its medium-term targets, and said plans are ongoing to leverage its existing scale advantages by driving ‘even greater’ cost efficiency.
Finally, IG said it expects ‘in the coming months’ to appoint a permanent chief executive officer to replace June Felix, who abruptly resigned in late August due to ill health. Chief Financial Officer Charlie Rozes was promoted to acting CEO after Felix commenced medical leave in early July.
IG Group shares were up 1.4% at 677.00 pence in London on Thursday morning.
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