IG Group’s Share Price Rose 5.36% on Upbeat Q3 FY 2024 Results

The IG Group Holdings plc (LON: IGG) share price rose 5.36% after releasing its financial results for the third quarter of its 2024 fiscal year, the three months to 29 February 2024. The financial services company’s fiscal year ends on 31 May 2024. 

During the third quarter, IG Group reported a total revenue of £240.1 million, showing growth from the second quarter (Q2 FY24: £229.7 million) and maintaining stability compared to the same period last year (Q3 FY23: £239.3 million), despite experiencing the lowest market volatility in over half a decade.

The number of active clients for the quarter stood at 266,800, an increase from Q2 FY24 (263,600) and remained broadly consistent with the previous year (Q3 FY23: 268,600). The company observed a rise in first-time trades to 18,000, compared to 16,600 in the second quarter and 17,400 year-over-year.

Over-the-counter (OTC) client income retention was adjusted to the median of the expected long-term range. Total client assets reached a new peak of £10.1 billion as of 30 November 2023, up from £9.3 billion, with client money balances holding steady since the halfway mark of FY24.

Interest income for the quarter amounted to £35.2 million, aligning with projections, including £19.1 million generated in the United States.

Tastytrade, part of the Group, reported a record quarter, generating total revenue of $62.6 million. This is an 8% increase from the second quarter (Q2 FY24: $57.8 million) and a 15% increase from the previous year (Q3 FY23: $54.6 million). 

This revenue growth, translating to a 10% increase to £49.4 million in GBP terms (Q3 FY23: £44.9 million), was attributed to an uptick in trading revenue and interest income. Up to this point in the year, the performance underscores the advantages of a diversified portfolio and the high engagement level of IG's clientele, who continued to trade actively despite subdued market conditions.

Although volatility was significantly lower, active clients decreased only 4% to 323,100 (Q3 FY23 YTD: 335,400). First trades fell by 6% to 51,800 (Q3 FY23 YTD: 54,900). Interest income for the period reached £105.4 million, a substantial increase from £50.1 million year-over-year, with £56.4 million earned in the US (Q3 FY23 YTD: £32.7 million). 

Tastytrade continued to excel, achieving total revenue of $180.4 million, up 24% from the previous year (Q3 FY23 YTD: $146.0 million). Revenue in GBP terms increased by 17% to £143.7 million (Q3 FY23 YTD: £122.8 million).

IG Group share price. 

The IG Group share price rose 5.36% to trade at 740.5p from Wednesday’s closing price of 702.8p.