IG Group Continues Momentum in Q1 of FY2021, Revenue Spikes 62% YoY

IG Group Holdings plc has seen a continuation of its solid business performance, the company announced in its trading update today, showing that revenue increased by 62 per cent in the first quarter of the online trading provider’s 2021 fiscal year.

For the three months ended on 31st August 2020, which is Q1 of FY2021, net trading revenue was £209 million. This is stronger than the same period of the prior year, when net trading revenue was £129.1 million, by 62 per cent.

According to the trading provider’s update today, its performance was driven by a combination of continued high levels of trading activity from existing clients, and growth in its active client base.

Whilst IG Group’s net trading revenue was higher on a yearly measurement, the company’s performance is not as solid as the final quarter of fiscal 2020, the three months ended on the 31st of May, 2020.

As Finance Magnates reported, revenue for the fourth quarter more than doubled year-on-year, reaching £259.5 million, up from £117.9 million in Q4 of fiscal 2019. However, Q4 of fiscal 2020 did capture peak Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term driven by the coronavirus pandemic.

IG Group Continues to See an Uptick in Active Clients

During the three-month period, IG Group had 201,500 total active clients. This is more robust than the previous year by 50 per cent. In this period, 134,800 clients traded OTC leveraged products, in comparison to 92,300 clients in the first quarter of fiscal 2020.

Across the first quarter of fiscal 2021, IG Group recorded £170.8 million in revenue in its Core Markets. Year on year, this is stronger by 56 per cent. During the period, the company saw particularly strong performance in its retail client base in the United Kingdom and Europe.

Taking a look at revenue in the firm’s Significant Opportunities portfolio, in Q1 2021, revenue came in at £38.2 million. This represents an uptick of 94 per cent year on year, up from £19.7 million in the first quarter of fiscal 2020.

Commenting on the results, June Felix, Chief Executive Officer, of IG Group, said in the statement: "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."