IG Group’s revenue jumps 65% in the fiscal third quarter

IG Group Holdings plc (LON: IGG) said on Thursday that its revenue in the fiscal third quarter posted a significant increase on the back of a high level of trading amidst the ongoing Coronavirus pandemic. The company also said that its active clients count jumped to a record high in Q3.

IG Group shares were reported more than 3% up in premarket trading on Thursday and gained another 1% on market open. Including the price action, the stock is now trading at £8.47 per share. In comparison, IG Group had started the year 2021 at a per-share price of £8.82.

IG Group’s statement on Thursday

IG Group reported £203.3 million of revenue in the quarter that concluded on 28^th February. The figure translates to a 65% annualised growth and an 11% increase on a quarter over quarter basis. IG Group said on Thursday:

“Should IG see normalisation in financial market volatility, or a stabilisation in the macro-environment, we would anticipate some reduction in the level of client acquisition and activity, although underpinned by the larger high-quality client base.”

The London-based firm expressed confidence that it was likely to achieve its three-year target of generating £160 million of revenue from its Significant Opportunities portfolio by the end of fiscal 2021. Originally, IG Group had expected to hit this target in 2022.

In separate news from the United Kingdom, multinational retailer Marks & Spencer said on Thursday that it intends to launch a series of guest clothing brands on its website to boost online sales this spring.

IG Group to acquire Tastytrade for £720 million

IG Group is currently in the process of acquiring Tastytrade (a U.S. trading platform) for £720 million. The British company confirmed on Thursday that the deal was expected to complete in Q1 of fiscal 2022.

IG Group that used to offer 12 thousand leveraged equity products, withdrew roughly 8% of these due to the GameStonk frenzy that started earlier this year. In its previous report published in late January, the online trading platform had noted a more than 100% growth in its profit in the fiscal first half.

IG Group performed fairly upbeat in the stock market last year with an annual gain of more than 20%. At the time of writing, the British firm has a market capitalisation of £3.14 billion and a price to earnings ratio of 9.12.