IG Group Reports Revenue Growth Driven by OTC Trading and US Expansion

IG Group reported a 26% year-on-year increase in revenue for the three months ended November, supported primarily by stronger activity in its over-the-counter trading business, according to the broker's quarterly results released Tuesday.

The London-listed brokerage, which recently aligned its financial year with the calendar year, said revenues from CFDs and spread betting rose 27% to £210.9 million, compared with £166.0 million in the same period last year. OTC products remained the group's largest revenue contributor.

Equities trading revenues also increased sharply, rising from £9.5 million to £23.0 million. IG noted that £7.5 million of the increase was attributable to its acquisition of Freetrade, indicating that organic growth accounted for a smaller portion of the headline percentage gain.

In the US, IG's options-focused subsidiary tastytrade recorded a 29% year-on-year increase in revenue, generating £44.0 million during the quarter. The group said it has established a new divisional leadership team to oversee its US operations, describing the market as increasingly important to its long-term growth strategy.

The company also provided an update on its digital assets business, confirming that it obtained a Markets in Crypto-Assets (MiCA) licence at the end of November. The licence enables IG to offer crypto trading services to clients across the European Union, expanding its regulatory footprint in the region.

While the results point to strong trading-driven revenues, IG's performance continues to reflect sensitivity to market conditions, particularly in leveraged OTC products, which remain the core driver of its financial results.