IG Group Gains 15% Revenue For First Quarter Of 2024
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IG Group has announced its Q1 result for 2024, revealing a 15% surge in revenue. The London-listed company generated £279 million as its total revenue from June to August, showing a 15% increase year-over-year. It also stated that the revenue was boosted by higher client revenue in addition to increased volatility across different asset classes in the first week of August.
The revenue figures also include interest income. Out of the entire figure, stock trading and investments generated £11.2 million while revenue from exchange-traded derivatives rose to £59.6 million, indicating a 20% increase. OTC derivatives generated the highest revenue for the firm, reaching £208.1 million, representing a 14% increase year-over-year.
However, the platform recorded a drop in the number of active traders by 1% to 263,200, which means that the revenue generated from each trader increased.
IG Group Records A Drop In Pre-Tax Profit
The company’s annual pre-tax profit was negative, despite an increase in the total revenue generated. The pre-tax profit dropped to £400.8 million, representing an 11% reduction compared to the same period last year. Additionally, IG group recorded a 15% decline in its net income to £307.7 million.
IG Group also reported that it realized £36 million in its net income for the first quarter of the year. This is slightly higher than the £34.4 million recorded in the same quarter in the previous year. Also, it recorded £13.7 million as its interest income from OTC derivatives in Q1 2024. IG Group announced that it recorded £18.4 million from its exchange-traded derivatives for the first quarter of the year.
US-based Subsidiary Tastytrade Brought In The Major Revenue For IG Group
The firm stated that the major part of its revenues from exchange-traded derivatives came from Tastytrade, its US-based subsidiary. It recorded a revenue of £70.8 million, representing an 18% surge compared to the previous quarter. But in GBP terms, the result increased to £55 million, representing a year-over-year increase of 17%.
Tastytrade also recorded an overall increase in trading because of a surge in trading revenue. The platform’s revenue rose from £37.1 million in the first quarter of last year to £47.1 million in the first quarter of the current year.
However, client cash balances in IG Group’s business remained stable at £1.9 billion, which is the same for the previous quarter. But it dropped from £2.7 billion to £2.6 billion for non-US markets. IG has also closed DailyFX, its forex analysis and trading news website.
