Spread betting and contracts for difference (CFD) provider IG Group said high levels of trading activity among existing clients and new customer growth helped grow revenue 61.9% year-on-year in the first quarter of its fiscal year.Total revenue for the three months through to 31 May amounted to £209.0m (€230.0m/$270.7m), up from £129.1m in the corresponding period last year.
Over-the-counter (OTC) leveraged revenue increased by 58.6% year-on-year to £195.1m, while revenue from stock trading and investments jumped 230.4% to £7.6m.
IG Group also noted a 65.8% rise in revenue from exchange traded derivatives, which £3.8m in Q1 FY2019 to £6.3m.
The provider said that the amount of revenue generated in what it regards as its core markets – countries regulated by the European Securities and Markets Authority, Australia, Singapore, Switzerland, Dubai and South Africa – amounted to £170.8m, a 56.1% improvement on the prior year. These territories accounted for 81.7% of total revenue in Q1.
IG Group noted a particularly strong performance by its retail client base in UK and Europe, with growth delivered in terms of both revenue per client and the number of active clients.
In terms of other regions, IG Group said revenue in regions it considers offering significant growth opportunities – including the Japan, the US and China – stood at £38.2m, up 93.9% on last year and putting the provider on track to deliver a target of £100m in revenue growth from this portfolio by the end of FY22.
“I am excited by the outstanding performance we delivered in the first quarter as we enter the second year of our three-year growth strategy,” chief executive June Felix said.
“This was a great start to the year and though there was some moderation from the exceptional performance in Q4, our first quarter results demonstrate IG’s continued strength across the core markets, while also highlighting the growth potential in the Significant Opportunities.”
IG Group also pointed out strong customer growth, with total active clients increasing 50.3% year-on-year to 201,500. Some 34,600 new clients placed their first trade in the quarter, up 129.0% year-on-year.
A total of 134,800 clients traded OTC leveraged products in Q1, an increase of 46.1% on the previous year, with 23,500 of the new clients having taken part in OTC leveraged activities during the quarter.
“Our focus remains on providing a first-class experience to sophisticated clients looking to trade across a range of global financial markets,” Felix said.
“We continue to invest in our people, platform and technology, to deliver the functionality and capabilities demanded by our loyal, high quality client base, while maintaining our differentiated business model.”
