IG Group Reports 13% Increase in Net Trading Revenue in Q3 FY22

IG Group Holdings plc, a purpose-led global financial technology business, today issues its scheduled update on revenue for the three months to 28 February 2022 (Q3 FY22), representing the third quarter of the financial year ending 31 May 2022 (FY22).

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Q3 FY22 was another consecutive quarter of revenue growth for the Group, with net trading revenue from continuing operations of £257.2 million (Q3 FY21: £226.7 million) up 13%, or 1% on a pro forma basis, against a very challenging comparative period which included the extraordinary 'meme stock' related volatility. This reflects an all-time high in the number of active clients of 292,200 (Q3 FY21: 220,900).

As anticipated, first trades in Q3 FY22 of 25,600 were down 32% on the prior year (Q3 FY21: 37,600) but continued to be significantly higher than the pre-pandemic quarterly average (Q1-Q2 FY20: 13,200).

Within OTC leveraged derivatives, performance was excellent across all regions reflecting increased trading in commodities and indices in particular. The UK and EU reported their highest quarterly revenue since Q4 FY20, which represented the peak of the pandemic-related trading activity.

Within exchange traded derivatives, on a pro forma basis, tastytrade revenue for the quarter of £28.4 million was up 5%, or 3% in USD. Stock trading and investments revenue decreased year-on-year by 54%, although active clients reached record levels.

Q3 FY22 revenue in the Core Markets+ segment was £222.0 million (Q3 FY21: £221.7 million); revenue increased 6% on the prior quarter (Q2 FY22: £209.0 million), reflecting the growing client base, which reached a record high in Q3.

Q3 FY22 revenue in the High Potential Markets segment was £35.2 million, up 9% on a pro forma basis (Q3 FY21: £32.1 million). Alongside continued growth in tastytrade, Spectrum revenue grew 89% on the prior year period as volumes on the exchange increased. Spectrum continues to make good progress on adding additional brokers and issuers.