IG Group Holdings plc First Quarter Revenue Update (5077Z)

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

[e-mail] [e-mail] [e-mail]

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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September 15, 2022 02:00 ET (06:00 GMT)