IG Group Reports Solid Fiscal 2020 Performance, Boosted by Q4 Volatility

IG Group Holdings plc has published its financial results for its 2020 fiscal year, ended on the 31st of May 2020, revealing an overall successful year for the company, boosted by COVID-19 volatility in the final quarter.

During the 12 month period, the online trading provider achieved net trading revenue of £649.2 million. When measuring this against the previous year, when IG posted revenue of £476.9 million, net trading revenue increased by 36 per cent.

For the first three quarters of the fiscal 2020 year, net trading revenue was stronger by 9 per cent on an annual comparison, reaching £389.7 million. However, it was in the final quarter that the broker witnessed a particularly strong performance, with revenue for the fourth quarter more than doubling year-on-year, reaching £259.5 million, up from £117.9 million in Q4 of fiscal 2019.

In fiscal 2020, IG Group noted a 34 per cent growth of active clients, climbing from 178,500 in fiscal 2019 to 239,600 in fiscal 2020, with the broker onboarding 96,900 new clients. 

Profit before tax also saw a notable increase in fiscal 2020, coming in at £295.9 million. This represents an uptick of 52 per cent, with the prior-year period posting a profit before tax of £194.3 million.

Commenting on the results, June Felix, Chief Executive Officer of the IG Group said in the statement: “It’s been a successful first year in our three-year growth strategy to become a more sustainable, diversified, and global business. We concluded FY20 well on track to deliver on our medium-term targets and are confident in achieving the goals we’ve set. I’m delighted with the tangible progress we’ve made, the resilience we’ve shown as a company, and the record results we’ve delivered. 

Future outlook of IG Group

Looking ahead, IG Group expects to maintain momentum in its Core Markets and Significant Opportunities, continuing on from the progress made in fiscal 2020. This will allow the company to deliver on its medium-term targets which remain unchanged.

For its 2021 fiscal year, the online trading provider anticipates that market volatility will return to more normalised levels. Nonetheless, the company has seen continued heightened trading activity, reflecting volatility. However, volumes and volatility are not close to the peak seen in March.

“This year we have also welcomed Mike McTighe, Chairman of the Board, and Charlie Rozes, our new CFO, to IG Group. They both bring extensive international experience to the Company. I am looking forward to working closely with them as we continue to focus on delivering sustainable growth and attractive shareholder returns,” Felix continued in the statement.