IG Group (LON: IGG) closed the first quarter of its financial year 2024 with a total revenue of £242.9 million that remained flat year-over-year. Although revenue from over-the-counter products, including CFDs and spreading, declined 8 percent to £182.7 million, other areas of the business dragged the number higher.

IG’s Revenue Streams

According to the official numbers, between June and August, the London-headquartered broker generated £49.8 million in revenue from exchange-traded derivatives products, which is a yearly jump of 37 percent. Revenue from stock trading and investment products further jumped 61 percent to £10.4 million.

“[The total revenue] reflected the benefit of business diversification over the past few years, as some moderation in OTC derivatives revenue in the quarter was offset by exchange-traded derivatives and stock trading, both of which grew revenues significantly year over year,” IG stated.

Strong Interest Income

In the three months, IG generated £34.4 million, compared to the previous year’s £7.1 million, from net interest income. Out of this, £11.8 million, which is up from £1.2 million in the first quarter of FY23, was related to OTC derivatives.

“Similar to trends seen in Q4 FY23, a decrease in net trading revenue reflected substantially lower 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 across a range of asset classes, which was more than offset by strong growth in interest income, which resulted from a combination of higher interest rates and stable client money Client Money Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Read this Term balances from the year-end,” the broker added.

IG further broke down its revenue streams into two portfolios: Core Markets+ and High Potential Markets. The revenue from Core Markets+ declined 6 percent to £188.7 million, reflecting softer market conditions through most of the quarter, while the other one shot up 30 percent to £54.2 million. Its US-based subsidiary tastytrade brought in $60 million in revenue, which is an increase of 48 percent.

Clients and Outlook

The broker reported a yearly decline in the number of active clients to 267,000 from 279,300. However, the total client balances remained stable at £4.1 billion.

As for the outlook, “the Group remains confident of achieving its medium-term targets. We are progressing with plans to drive even greater cost efficiency, leveraging the scale advantages that we have as a global Group.”

Meanwhile, IG is in search of a new Chief Executive after the departure of June Felix last month due to ill health. Charlie Rozes, the Chief Financial Officer (CFO) at IG, has temporarily taken over the apex role.