IG Group's Q3 FY22 Revenue Jumps 13%, Active Clients Hit Record

IG Group Holdings plc (LON: IGG) on Wednesday reported a 13 percent jump in its revenue between December and February, which is the third quarter of the financial year for the company. The broker generated £257.2 million in the three months.

IG highlighted that the comparative period was very challenging as Q3 of FY21 witnessed an “extraordinary 'meme stock' related volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term.”

Out of the total, £219.3 came from IG’s over-the-counter (OTC) leveraged derivatives business, which jumped by 4 percent from the same quarter of the prior year. However, stock trading and investment revenue dropped by 54 percent to £6.6 million.

The largest revenue driver was the platform’s exchange-traded derivatives. It brought in £31.3 million in the reported three months from a negligible figure of £1.9 million in Q3 of FY21. Additionally, it factored in the revenue from tastytrade that generated £28.4 million in the quarter.

“I'm delighted to be reporting another quarter of outstanding performance driven by a record number of clients trading in the period,” said IG Group’s CEO, June Felix.

Record Number of Clients

Moreover, the client figures of the broker came in to be very impressive. The number of quarterly active clients came in to be 292,200, compared to Q3 of FY21’s 220,900.

“Today, we have more clients and a broader range of products to trade than ever before in our history. But, we aren't stopping here - a new IG is emerging, and we're excited by the opportunities ahead of us, building on our strengths and track record of delivery,” Felix added.

Furthermore, the broker said that it is now expecting FY22 revenue to moderately exceed current market expectations. However, for tastytrade, revenue growth may remain below the previously guided 25 to 30 percent range for FY22 due to slower growth in US options trading volumes in the recent quarters.