TIDMIGG
RNS Number : 9208L
IG Group Holdings plc
16 September 2021
16 September 2021
LEI No: 2138003A5Q1M7ANOUD76
IG GROUP HOLDINGS PLC
First 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 GBP221.7 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 GBP227.5 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 GBP221.7 million, higher than both the same
period in the prior year (Q1 FY21: GBP209.0 million) as well as the
recent Q4 FY21 period (GBP214.1 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 GBP20.8 million.
Excluding tastytrade, adjusted net trading revenue for the quarter
was GBP200.9 million, 4% lower than Q1 FY21, reflecting anticipated
moderation in trading activity.
Adjusted net trading revenue Q1 Q1 %
by product (GBPm) FY22 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 221.7(1) 209.0 6%
------------------------------- --------- ------ --------
(1) Excludes GBP5.8 million of foreign exchange hedging gain
associated with the financing of the tastytrade acquisition
- Core Markets+ revenue was GBP192.1 million in the quarter (Q1
FY21: GBP199.9 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 GBP29.6 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 GBP38.2 million (pro forma Q1 FY21: GBP32.9 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.
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END
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