IG Group Holdings Plc (LSE:IGG) said third quarter stock trading earnings fell dramatically compared to last year’s meme-stock craze but growth in new markets added to overall revenues.
The FTSE 250 financial trading site expects to “moderately exceed” market expectations for the full year but a sluggish options trading market in the US meant growth in its tastytrade subsidiary could be below previous guidance of 25 – 30%.
IG had a record 292,200 active clients in the third quarter of financial year 2022 against 220,900 in the same period the previous year.
This helped drive 4% growth in over-the-counter leveraged derivates revenue and £30mln of new revenue in exchange-traded derivatives.
But a failure to replicate last year’s ‘meme stock’ trading frenzy, when huge liquidity flowed into the market from retail investors, pushed stock trading and investment revenue down 54%, while core market revenue barely grew to £222mln.
Despite those challenges, revenue for the company was up 14% driven by strong performance in its “high potential” markets and derivatives trading.
"I'm delighted to be reporting another quarter of outstanding performance driven by a record number of clients trading in the period,” said IG Group CEO June Felix.
“Today, we have more clients and a broader range of products to trade than ever before in our history. But we aren't stopping here - a new IG is emerging, and we're excited by the opportunities ahead of us, building on our strengths and track record of delivery.”
Shares in IG Group were down 3.51% this morning to 755.5p.