IG Group Holdings PLC (LON:IGG) continued to see exceptional levels of trading activity in the three months to the end of February.
The spread-betting outfit said its active client base is now at record levels and is materially higher than it was a year earlier, with trading behaviours and levels of retention comparable to historical averages.
The group was especially pleased with its Significant Opportunities portfolio, comprising the US, Japan, Emerging Markets and Greater China geographies, where revenue over the full year (to the end of May) is set to come close to hitting management’s three-year revenue target of £160mln by the end of May 2022 one year ahead of schedule.
Group revenue in what is the third quarter of IG's fiscal year was up 65% to £230.3mln from £139.8mln in fiscal 2020 (FY20) and was up 11% on the preceding quarter.
The Core Markets division’s revenue jumped 67% to £192.7mln, from £115.7mln the year before, while the Significant Opportunities portfolio at £37.6mln was up 55% year-on-year, largely driven by a 50% increase in the number of active clients to 40,100 (Q3 FY20: 26,700).
The group’s pending acquisition of tastytrade, a US retail-focused online brokerage platform, is working out well so far with the number of active trading accounts in February 2021 double the level they were in February 2020.
READ IG caps record half-year with $1bn purchase of US-based Tastytrade
With some regulatory approvals now obtained and others pending but on track, the acquisition is anticipated to close between June and August of this year.
“The continued performance from the Significant Opportunities portfolio has been remarkable, and we anticipate substantially achieving the revenue target of £160 million one year ahead of plan. The group is also continuing to grow the size of its high quality and loyal client base which represents a long-term asset to the group,” said June Felix, the chief executive of IG.
“Our planned US acquisition of tastytrade is progressing well and the outstanding client growth delivered in the period underlines the further, significant growth potential of this business. This accelerates our strategy to drive new sources of growth, while also expanding the group beyond its core OTC [over-the-counter] offering,” she added.
IG shares were up 4.5% at 847.5p in the first hour of trading.