IG Group’s Q1 revenue jumps on increased market volatility and higher trading volumes

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Sep 17, 2020
  • IG Group’s Q1 revenue jumps on increased market volatility and higher trading volumes.
  • The online trading platform had 201,500 active clients at the end of the fiscal first quarter.
  • Its revenue from Significant Opportunities came in 94% higher on a year over year basis.

IG Group Holdings plc (LON: IGG) said on Thursday that its revenue in the fiscal first quarter reported growth as the Coronavirus pandemic continues to fuel uncertainty in the global economy that resulted in increased volatility and consequently higher trading volumes in recent months. IG Group opened its London office last week after months of work from home.

The online trading platform offers access to more than 17 thousand financial markets to retail investors. For the three months that concluded on 31st August, IG Group registered £209 million of revenue as compared to a much lower £129.1 million in the same quarter last year.

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According to IG Group:

“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.”

IG Group had 201,500 active clients at the end of Q1

As of the end of the first quarter, the London-based company had 201,500 active clients in total that represents a 50% increase versus the comparable quarter of 2019. In its annual report published in the last week of July, IG Group had revealed a 52% growth in its full-year profit.

In the core markets, IG Group added, revenue was particularly strong as it noted a 56% annualised growth to £170.8 million. In the United Kingdom and Europe at large, its retail client base posted growth in active clients as well as revenue per client.

At £38.2 million, its revenue from Significant Opportunities came in 94% higher on Thursday on a year over year basis.

Chief Executive June Felix’s remarks on Thursday

CEO June Felix commented on the financial update and said:

“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.”

Shares of the company opened about 2.5% up on Thursday and jumped another 9% in the next hour. At a per-share price of 833 pence, IG Group has now gained just under 20% so far in the stock market this year. Trading stocks online is easier than you think. Here’s how you can buy shares online in 2020.

At the time of writing, IG Group is valued at £3.08 billion and has a price to earnings ratio of 12.81.

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