IG Group (LSE: IGG) reported a 12% increase in total revenue for the third quarter of fiscal year 2025 (Q3 FY25), reaching £268.0 million as stronger market conditions and an uptick in active clients drove performance.

IG Group Reports 12% Revenue Growth in Q3 FY25

Trading revenue rose 15% compared to the same period last year, totaling £235.3 million for the quarter ended February 28, 2025. The growth was primarily attributed to higher revenue per client resulting from improved market conditions across the company's product offerings.

"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.

273K of Active Clients

Active clients across the Group increased 2% year-over-year and 5% quarter-over-quarter to 272,700, reflecting improved customer acquisition efforts. First trades increased across all product categories compared to both prior periods, with the company citing stronger market conditions, improved product offerings, effective promotions, and increased marketing investment as key drivers.

OTC derivatives, IG's largest revenue segment, generated £185.9 million in revenue, up 14% from the previous year and 12% from the prior quarter. Exchange traded derivatives saw an 18% year-over-year (YoY) increase to £41.7 million, while stock trading and investments revenue jumped 32% to £7.7 million.

Record Revenue for tastytrade

The company's U.S.-based tastytrade business performed particularly well, with trading revenue reaching a record $50.9 million, representing a 30% increase from the previous year.

“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.

Net interest income was the only segment to decline, falling 7% year-over-year to £32.7 million, which the company attributed to lower interest rates while client money balances remained stable at £3.8 billion.

Year-to-Date Performance and Outlook

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

The company expressed confidence in meeting consensus expectations for total revenue and adjusted profit before tax for the full fiscal year, citing Q3 results and continuing stronger market conditions in Q4.

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

Freetrade, Share Buyback and More

IG Group announced that it has received key antitrust and change in control approvals for its acquisition of Freetrade, which is now expected to close in April 2025, earlier than initially anticipated. The company noted that Freetrade has continued to perform in line with expectations.

The Group also extended its current share buyback program by £50 million to £200 million, to be completed in fiscal year 2025. As of March 11, 2.3 million shares had been repurchased at a cost of £21.7 million.

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