IG Group has released its financial results for the first quarter of fiscal year 2025 ending May 31, 2025. The report showed strong revenue growth despite a slight decline in the number of active customers, highlighting the company's ability to capitalize on market volatility.

For the three months ended August 31, 2024, IG Group generated total revenue of £278.9 million, up 15% year-on-year from £241.8 million in the first quarter of fiscal 2024. This growth was largely driven by higher revenue per client, which IG attributed to increased volatility across several asset classes, particularly in early August.

Although the total number of active clients declined 1% year-over-year, dropping from 267,000 in the first quarter of fiscal 2024 to 263,200 in the first quarter of fiscal 2025, the company was able to maintain a solid performance. The ability to generate more revenue per customer, despite a slight decline in the number of active customers, speaks to IG's strength in adapting to changing market conditions and optimizing its customer base.

Net interest income played a significant role in IG's first quarter results at £36.8m, up from £34.4m in the same period last year. Of this, £13.7m came from over-the-counter (OTC) derivatives, up from £11.8m in the first quarter of FY24, while exchange-traded derivatives brought in £18.4m, up slightly from £18.0m in the prior year. Equity trading and investments added £4.7m to the total, relatively unchanged from £4.6m in the first quarter of FY24.

One of IG Group's highlights was its subsidiary Tastetrade, a platform specializing in exchange-traded derivatives. Tastytrade's total revenue grew 18% year-on-year to $70.8 million, while in sterling terms it grew 17%, bringing the total to £55.0 million. Tastetrade's net trading revenue also grew significantly, up 27% in US dollars and 26% in sterling terms to $47.1 million and £36.6 million respectively.

IG's customer cash balances remained flat, with U.S. balances of $1.9 billion at the end of the quarter, unchanged from May 31, 2024. Meanwhile, outside the U.S., client balances declined slightly to £2.6 billion from £2.7 billion in the same period.

In addition to its earnings achievements, IG Group is continuing its £150 million share buyback program, first announced in July 2024. The first tranche of £75 million was completed on September 9, with the second tranche due to commence shortly. The program is expected to complete by January 31, 2025, depending on share price movements and other capital requirements.

IG Group expects its results for FY 2025 to remain in line with market expectations, reflecting stable performance during the year.