REG - IG Group Hldgs plc - First Quarter Revenue Update

IG groupAnnouncement

15/09/2022 07:00

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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 £241.8 million (Q1
FY22: £218.3 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 (£m)             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 £5.8 million of foreign exchange hedging gain associated with
the financing of the tastytrade acquisition

 

-     Core Markets+ total revenue increased to £200.3 million in the
quarter (Q1 FY22: £191.7 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 £41.5 million in the quarter
(Q1 FY22: £26.6 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 £150 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 £30.2 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)
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.iggroup.com%2F&data=05%7C01%7CSimon.Wright%40ig.com%7Cfa58780cb4c445598c5a08da3f12df38%7C4b4cca9cedaf42f38e219070c5d9d76b%7C0%7C0%7C637891647530086156%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=ZopP0pt%2Bpil6u7sT7JRD8OjvetOm4sSxJJ%2FDPRvXU2A%3D&reserved=0)
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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