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IG Group Hldgs plc - First Quarter Revenue Update

RNS Number : 2328Z
IG Group Holdings plc
17 September 2020
 

 

17 September 2020

LEI No: 2138003A5Q1M7ANOUD76

IG GROUP HOLDINGS PLC
First Quarter Revenue Update

 

IG Group Holdings plc ("IG", "the Group", "the Company"), a global leader in online trading, today issues its scheduled update on its revenue for the three months to 31 August 2020 ("Q1 FY21"), representing the first quarter of the financial year ending 31 May 2021 ("FY21").

 

Business performance

 

The business performed very strongly throughout the first quarter, delivering net trading revenue of £209 million, 62% higher than the same period in the prior year (Q1 FY20: £129.1 million). Performance was driven by a combination of continued high levels of trading activity from existing clients and growth in the active client base, with 201,500 total active clients, up 50% on the prior year (Q1 FY20: 134,100); 134,800 clients traded OTC leveraged products in the quarter (Q1 FY20: 92,300).

·    Q1 FY21 revenue in the Core Markets was £170.8 million, up 56% on the prior year (Q1 FY20: £109.4 million). Performance of the Retail client base in UK and Europe was particularly strong, with growth delivered in both revenue per client and number of active clients.   

·    Q1 FY21 revenue in the Significant Opportunities portfolio was £38.2 million, up 94% on the prior year (Q1 FY20: £19.7 million) and is on track to deliver the medium-term target of £100 million in revenue growth from this portfolio by the end of FY22.   

Revenue by product (£m)

Q1

FY21

Q1

FY20

%

Change

OTC leveraged

195.1

123.0

59%

Exchange traded derivatives

6.3

3.8

64%

Stock trading and investments

7.6

2.3

235%

Group

209.0

129.1

62%

 

New client acquisition remained strong as a result of continued demand and improved marketing effectiveness across multiple channels, with 34,600 new clients placing a first trade in the quarter, 129% higher than the prior year, with 23,500 of these representing new OTC leveraged clients. To date, new client retention rates, including the Q4 FY20 cohort, are following similar trajectories to historical averages.

 

June Felix, Chief Executive Officer, commented:

"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.

 

This was a great start to the year, and although 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.

 

Our focus remains on providing a first-class experience to sophisticated clients looking to trade across a range of global financial markets. 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."

 

Analyst and investor call

 

There will be a conference call for analysts and investors at 8.00am (UK time) today.  The call can be accessed by conference call by visiting https://pres.iggroup.com/ig053/vip_connect, or by webcast at https://pres.iggroup.com/ig053. The audio recording of the conference call will be archived for access at www.iggroup.com/investors.

 

For further information, please contact:

 

IG Group Investors

IG Group Press

FTI Consulting

 

 

 

Liz Scorer

Ramon Kaur

Ed Berry

020 7573 0727

020 7573 0060   

07703330199

[email protected]           

[email protected]

 

 

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 2019. 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 empowers informed, decisive, adventurous, people to access opportunities in over 17,000 financial markets. With a strong focus on innovation and technology, the company puts client needs at the heart of everything it does.

IG's vision is to provide the world's best trading experience. Established in 1974 as one of the world's first providers of financial derivatives to retail traders, it continued leading the way by launching the world's first online and iPhone trading services.

IG is an award-winning, multi-product trading company which allows retail, professional and institutional clients to trade 24 hours a day, 7 days a week. IG is the world's No.1 provider of CFDs and a global leader in forex. It provides leveraged services with the option of limited-risk guarantees and offers an execution-only stock trading service in the UK, Australia, Germany, France, Ireland, Austria and the Netherlands. IG has a range of affordable, fully managed investment portfolios, which provide a comprehensive offering to investors and active traders.

 

 

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Price: 777

Market: LSE
Market Cap: £2.88 billion
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