IG Group Revenue Surge: 12% Growth in Q3 FY25

IG Group Revenue Surge drives 12% Q3 FY25 growth, boosted by strong market conditions and increasing active clients. IG Group (LSE: IGG) posted a 12% rise in total revenue for the third quarter of fiscal year 2025 (Q3 FY25), reaching £268.0 million. Improved market conditions and an increase in active clients fueled the growth.

IG Group Revenue Surge as tastytrade Hits Record High

Trading revenue climbed 15% year-over-year, amounting to £235.3 million for the quarter ending February 28, 2025. An increase in revenue per client, driven by favorable market conditions across the company’s offerings, led the rise.

“Q3 revenue growth reflected stronger market conditions and an increase in active clients. New customer acquisition has improved and there is more to do to ensure stronger, sustained growth,” the company stated in its quarterly update.

Active Clients Increase

The number of active clients grew by 2% year-over-year and 5% from the previous quarter to 272,700, signaling successful client acquisition efforts. First trades increased across all product categories compared to past periods, with the company crediting improved market conditions, enhanced product offerings, effective promotions, and greater marketing investment for the boost.

OTC derivatives, the company’s primary revenue segment, generated £185.9 million, reflecting a 14% increase from last year and a 12% rise from the previous quarter. Exchange-traded derivatives recorded an 18% year-over-year (YoY) growth to £41.7 million, while stock trading and investment revenue surged 32% to £7.7 million.

IG’s U.S.-based tastytrade unit delivered strong results, with trading revenue hitting a record $50.9 million—an impressive 30% YoY increase.

“On a reported GBP basis, trading revenue increased 32% on the prior year and 22% on the prior quarter to £40.8 million (Q3 FY24: £30.9 million; Q2 FY25: £33.4 million),” the company commented.

However, net interest income was the only declining segment, slipping 7% year-over-year to £32.7 million. IG Group attributed this decline to lower interest rates, though client money balances remained stable at £3.8 billion.

IG Sees Strong Q3

For the first nine months of fiscal 2025, IG Group reported total revenue of £790.5 million, marking an 11% increase from the prior year. Active clients for this period rose 2% to 328,000.

The company reiterated its confidence in meeting consensus expectations for total revenue and adjusted pre-tax profit for the full fiscal year, citing Q3 performance and continued strong market conditions in Q4.

“The Group remains confident of meeting FY25 consensus total revenue and adjusted profit before tax expectations,” IG concluded.

IG Group confirmed that it has obtained key antitrust and regulatory approvals for its acquisition of Freetrade, which is now expected to close in April 2025—earlier than initially planned. The company stated that Freetrade continues to perform in line with expectations.

Additionally, IG expanded its share buyback program by £50 million, bringing the total to £200 million for fiscal year 2025. As of March 11, the company had repurchased 2.3 million shares at a total cost of £21.7 million.

Furthermore, IG Group plans to seek shareholder and regulatory approval to reduce its share premium account and merger reserve, which would boost distributable reserves and enhance flexibility for growth investments and shareholder returns.

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