Last checked at 16 Sep 2021 07:00
16 September 2021
LEI No: 2138003A5Q1M7ANOUD76
IG GROUP HOLDINGS PLCFirst Quarter Revenue Update
'IG delivered a strong first quarter performance driven by the size and quality of the client base delivering adjusted Group revenue of £221.7 million, in line with expectations'
IG Group Holdings plc ("IG", "the Group", "the Company"), a global leader in online trading, today issues its scheduled revenue update for the three months to 31 August 2021 ("Q1 FY22"), representing the first quarter of the financial year ending 31 May 2022 ("FY22").
Business performance
Revenue for the quarter was £227.5 million. Excluding the foreign exchange hedging gain associated with the financing of the tastytrade acquisition which completed on 28 June 2021, adjusted net trading revenue was £221.7 million, higher than both the same period in the prior year (Q1 FY21: £209.0 million) as well as the recent Q4 FY21 period (£214.1 million), and consistent with the Group's previous guidance. tastytrade delivered another consecutive record quarter of revenue. In the approximately two month period since completion, it delivered revenue of £20.8 million. Excluding tastytrade, adjusted net trading revenue for the quarter was £200.9 million, 4% lower than Q1 FY21, reflecting anticipated moderation in trading activity.
Adjusted net trading revenue by product (£m) | Q1 FY22 | Q1 FY21 | % Change |
OTC leveraged | 188.3 | 195.1 | (3%) |
Exchange traded derivatives | 25.8 | 6.3 | 310% |
Stock trading and investments | 7.6 | 7.6 | (1%) |
Group | 221.71 | 209.0 | 6% |
1 Excludes £5.8 million of foreign exchange hedging gain associated with the financing of the tastytrade acquisition
- Core Markets+ revenue was £192.1 million in the quarter (Q1 FY21: £199.9 million), down 4%, reflecting, as anticipated, the impact of ASIC regulation in Australia which came into effect in March 2021. The Japan business continued to perform strongly and delivered growth ahead of expectations in the quarter.
- High Potential Markets revenue was £29.6 million in the quarter, reflecting strong growth at tastytrade and Spectrum, offset by revenues from Nadex, which experienced reduced client activity. Pro forma revenue, which includes a full quarter of tastytrade was £38.2 million (pro forma Q1 FY21: £32.9 million) was up 16%.
Total active clients in the quarter were 287,200. Excluding tastytrade, active clients were up 12% at 225,900 (Q1 FY21: 201,500) reflecting both elevated levels of client acquisition over the 12 month period and new client retention levels tracking in line with historical client cohorts.
As anticipated, the Group saw some moderation in the level of new client acquisition compared to the exceptional levels seen throughout FY21. The Group onboarded 27,500 new clients in the period. Excluding tastytrade, 21,900 new clients were acquired, down 37% on the prior year period (Q1 FY21: 34,600) however this remains over 40% above the pre-pandemic quarterly average of 15,200 (Q1-Q3 FY20), which positions the Group well for the future.
The strong business performance in the quarter reflects the size and quality of the Group's active client base. The Group remains confident of achieving its medium term targets for the Core Markets+ and High Potential Markets portolios.
The Group's next market announcement will be its half year FY22 results, to be released in January 2022.
For further information, please contact:
IG Group Investors IG Group Press FTI Consulting
Liz Scorer / Simon Wright Ramon Kaur Ed Berry
020 7573 0727 / 0099 020 7573 0060 07703 330 199
investors@ig.com press@ig.com ed.berry@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 2021. 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 has been at the forefront of trading innovation since 1974. Since then, we've evolved into a global fintech company incorporating the IG, tastytrade, IG Prime, Spectrum, Nadex and DailyFX brands, with a presence in Europe, North America, Africa, Asia-Pacific and the Middle East.
Our award-winning products and platforms empower ambitious people the world over to unlock opportunities around the clock, giving them access to over 19,000 financial markets. Today, more than 400,000 clients call IG Group home. IG Group Holdings plc is an established member of the FTSE 250 and holds a long-term investment grade credit rating of BBB- with a stable outlook from Fitch Ratings.