TIDMIGG
RNS Number : 5077Z
IG Group Holdings plc
15 September 2022
15 September 2022
LEI No: 2138003A5Q1M7ANOUD76
IG GROUP HOLDINGS PLC
First Quarter Revenue Update
'IG delivered a solid first quarter revenue performance
positioning us well for the year ahead and supporting our
medium-term growth targets.'
IG Group Holdings plc ("IG", "the Group", "the Company"), a
leading global fintech company, today issues its scheduled revenue
update for the three months to 31 August 2022 ("Q1 FY23"),
representing the first quarter of the financial year ending 31 May
2023 ("FY23").
Business performance
- Total revenue for the quarter increased 11% to GBP241.8
million (Q1 FY22: GBP218.3 million). On a pro forma basis, which
includes a full quarter of revenue from tastytrade in the
comparative period, total revenue was up 7%.
Total revenue (GBPm) Q1 Q1 %
FY23 FY22 Change
OTC derivatives 197.8 188.3 5%
Exchange traded derivatives 30.8 22.6 (1) 36%
Stock trading and investments 6.1 7.6 (19)%
Interest income 7.1 (0.2) nm
------------------------------- ------ --------- --------
Group 241.8 218.3(2) 11%
------------------------------- ------ --------- --------
(1) Presented on a continuing operations basis, excluding
Nadex
(2) Excludes GBP5.8 million of foreign exchange hedging gain
associated with the financing of the tastytrade acquisition
- Core Markets+ total revenue increased to GBP200.3 million in
the quarter (Q1 FY22: GBP191.7 million), up 5%, as our high-quality
client base continued to actively trade through the period.
- Japan continued to deliver strong revenue growth of 24% year
over year, while the UK, EU, Australia and Emerging Markets also
saw higher revenue over the same period.
- High Potential Markets total revenue was GBP41.5 million in
the quarter (Q1 FY22: GBP26.6 million), up 56%, reflecting an
additional month of tastytrade as well as strong growth rates in
Spectrum and IG US. On a pro forma basis, High Potential Markets
total revenue growth was 18%.
- tastytrade total revenue grew by 62%, or 15% on a pro forma
basis. On a constant currency basis, pro forma total revenue
increased to $41.1 million, up 1%, driven by additional interest
income, offset by a reduction in trading revenue reflecting softer
market conditions in the period. As part of our ongoing integration
programme, a new Chief Marketing Officer for IG North America has
been hired, to develop and expand our marketing and branding
capabilities in the US market.
- Spectrum revenue continued to see significant growth year over
year, driven by increases in both active clients, and revenue per
client.
Total active clients across all markets and products in the
quarter were 279,300, in line with prior year, (Q1 FY22: 279,100)
reflecting the retention of the significantly increased number of
active clients over the past two years.
The Group onboarded 19,200 new clients in the period, down 27%
(Q1 FY22: 26,200) as anticipated. The quality of the new clients
remains consistent with those onboarded in previous quarters.
In July, the Board announced its new capital allocation
framework which balances delivering sustainable returns to
shareholders with ongoing investment in the business to execute our
growth strategy. As part of the new framework, we announced a
GBP150 million share buyback programme, which commenced during the
quarter. As at 13(th) September, approximately 3.7 million shares
have been re-purchased, at a cost of GBP30.2 million. The programme
is expected to be substantially completed in FY23.
The Group remains confident of achieving its medium-term targets
for the Core Markets+ and High Potential Markets portfolios.
The Group's next market announcement will be the half year FY23
results, to be released in January 2023.
For further information, please contact:
IG Group Investors IG Group Press FTI Consulting
Richard Heading / Simon Wright Alayna Francis Ed Berry /
Katherine Bell
020 7573 0742 / 0099 020 7633 5395 07703 330 199 / 079 7687
0961
investors@ig.com press@ig.com iggroup.sc@fticonsulting.com
Disclaimer - Forward-looking statements
This statement, prepared by IG Group Holdings plc (the
"Company"), may contain forward-looking statements about the
Company and its subsidiaries (the "Group"). Such forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "projects",
"estimates", "plans", "anticipates", "targets", "aims",
"continues", "expects", "intends", "hopes", "may", "will", "would",
"could" or "should" or, in each case, their negative or other
various or comparable terminology.
Forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors which are beyond the
Company's control and are based on the Company's beliefs and
expectations about future events as of the date the statements are
made. If the assumptions on which the Group bases its
forward-looking statements change, actual results may differ from
those expressed in such statements. There are a number of factors
that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements, including those set out under "Principal Risks" in the
Company's annual report for the financial year ended 31 May 2022.
The annual report can be found on the Company's website
(www.iggroup.com).
Forward-looking statements speak only as of the date they are
made. Except as required by applicable law and regulation, the
Company undertakes no obligation to update these forward-looking
statements. Nothing in this statement should be construed as a
profit forecast.
About IG
IG Group (LSEG:IGG) is an innovative, global fintech company
that delivers dynamic online trading platforms and a robust
educational ecosystem to power the pursuit of financial freedom for
the ambitious. For nearly five decades, the Company has evolved its
technology, risk management, financial products, content, and
platforms to meet the needs of its retail and institutional
clients. IG continues to innovate its offering for the new
generation of tomorrow's investors through its IG.com, tastytrade,
IG Prime, Spectrum, and DailyFX brands.
Established in 1974, IG Group is a London-headquartered FTSE 250
company offering its clients access to 19,000 financial markets
through its offices spread across Europe, North America, Africa,
Asia-Pacific and the Middle East.
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