IG Group Holdings (GB:IGG) today reported a 15% year-over-year growth in its Q1 FY25 revenues of £278.9 million amid high market volatility. According to its trading update, the increase was primarily due to higher revenue per client, fueled by increased volatility across various asset classes in early August. On the flip side, IG Group’s total number of clients decreased 1% year-over-year to 263,200 in Q1. IGG stock gained 0.89% as of writing.
IG Group provides online trading platforms and associated services to its retail and institutional clients.
IG Group Unveils Q1 Performance
Coming to its revenue, IG earned £208.1 million from OTC derivatives, marking a 14% increase compared to the previous year. Revenue from exchange-traded derivatives rose by 20%, while stock trading and investments grew by 8% compared to Q1 FY24. Additionally, the company said it generated net interest income of £36.8 million in the first quarter, an increase from £34.4 million in the previous year.
The Q1 numbers painted a picture of market recovery after the challenging conditions last year. IG Group’s revenue and profit declined in the previous fiscal year, hit by increased borrowing costs and a cost-of-living pressure that decreased customers’ disposable income.
The company further stated that its £150 million share buyback programme is on track for completion by January 31, 2025, depending on share price performance and capital needs. The first £75 million tranche was completed on September 9, with the second tranche set to begin soon.
Looking ahead, IG Group anticipates that its FY25 performance will align with market expectations.
Is IG Group a Buy or Sell?
According to TipRanks’ consensus, IGG stock has received a Strong Buy rating, backed by all Buy recommendations from six analysts. The IG Group share price forecast is 1,139p, which is 17.5% above the current trading levels.
