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IG Group issues Q3 update amid senior management departures

| By Robert Fletcher
IG Group has reported a marginal increase in revenue for Q3 of its 2024 financial year, while the business has also announced the departures of chief financial officer Charlie Rozes and chief operating officer Jon Noble.
IG Group Q3

In a short update on Q3, IG Group said revenue reached £240.1m (€281.2m/$307.6m). This was 0.3% more than £239.3m in the same period of the previous year.

During the three months to 29 February 2024, over-the-counter (OTC) derivatives generated the most revenue. Here, IG Group reported £176.9m in revenue, down 1.4% from £179.4m in 2023.

Revenue from exchange traded derivatives increased 2.7%. In addition, stock trading and investments revenue climbed 20.3% to £9.5m.

IG Group did not publish a full breakdown of its performance in Q3. However, it did reveal certain other figures for the period, including that total client assets reached a record £10.1bn by the end of the quarter.

It also referenced the performance of its Tastytrade financial network. Here, revenue was up 10.0% year-on-year to a new quarterly record of £49.4m, reflecting growth in both trading revenue and interest income.

Active clients were 0.7% lower at 266,800 but first trade increased by 3.5% to 18,000 for Q3. 

Year-to-date revenue down 6.0%

As to how Q3 impacted performance: in the year-to-date revenue for the nine months to the end of February, the total was down 6.0% to £712.7m. 

This was mainly due to a 12.1% fall in OTC derivatives revenue. In contrast, exchange traded derivatives revenue was up 13.0% to £153.4m and stock trading and investments revenue jumped 46.8% to £29.8m.

Breaking this down by portfolio, core market revenue slipped 10.1% to £545.8m. However, revenue in high potential markets increased 10.2% to £166.9m.

Picking out key data, IG Group said Tastytrade delivered another record performance, with revenue reaching £143.7m. This was 17.0% ahead of £122.8m in the previous year.

In addition, despite materially lower volatility, active clients only fell 3.7% at 323,100. First trades also fell 5.7% to 51,800.

IG Group will release its full-year results in July 2024. Total revenue and adjusted profit before tax are anticipated to be in line with expectations.

Double departure for IG Group

Alongside the results, IG Group also announced two senior members of staff will soon leave the company.

Rozes will remain as CFO and executive director until the end of July to ensure a smooth transition. 

He exits having also recently spent time as interim CEO after the departure of June Felix, who stepped down in September. Gormer Paddy Power Betfair chief executive Breon Corcoran was appointed its new CEO in December, moving into the role in January.

Meanwhile Noble is stepping down as COO and executive director with immediate effect. However, he will remain with the group for a short period to ensure an orderly transition. Noble joined IG in 2000 and has served on the board since 2018.

“We are grateful to Charlie and Jon for their service on the board and as part of the executive management team,” IG Group chairman Mike McTighe said. 

“Charlie has made an outstanding contribution to the company’s growth in his role as CFO and more recently as acting CEO. We thank Jon for his long service and the pivotal role he has played in positioning IG as the global market leader in our industry. 

“Charlie and Jon leave with our best wishes for the future.”

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