IG Group, a financial broker listed in London, reported an update on the company’s revenue for the third quarter of the financial year ending 31 May 2021. The overall trading activity jumped significantly in Q3 of FY21 as the company reported a revenue of £230.3 million, which is up 65% compared to £139.8 million in Q3 of FY20.
According to the official results, the recent performance was driven by a combination of strong trading activities by the company’s existing clients and a surge in client acquisition. IG Group reported 230,100 active clients in Q3 of FY21, which is a 60% jump compared to 143,800 in Q3 of FY20.
The financial broker mentioned that 40,300 new clients placed their first trade in the last quarter, which is up 81% compared to the same period in FY20. Around 5,700 new clients traded more than one product on the platform.
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Commenting on the latest announcement, June Felix, Chief Executive Officer at IG, said: “I am delighted with the excellent results and progress we have made towards delivering on our strategic goals. The continued performance from the Significant Opportunities portfolio has been remarkable, and we anticipate substantially achieving the revenue target of £160 million one year ahead of plan. The Group is also continuing to grow the size of its high quality and loyal client base which represents a long-term asset to the Group.”
Acquisition of Tastytrade
IG Group recently proposed a $1 billion acquisition of Tastytrade, the US-based online broker and a trading education platform. The company announced to pay the total amount through $300 million in cash and $700 million worth of IG shares. The financial broker is planning to expand its presence in the US through Tastytrade.
“Our planned US acquisition of Tastytrade is progressing well and the outstanding client growth delivered in the period underlines the further significant growth potential of this business. This accelerates our strategy to drive new sources of growth while also expanding the Group beyond its core OTC offering,” Felix added.