IG Group’s revenue jumped in the third quarter amid high trading levels and a flurry of new customers in a period that included frenzied dealing in GameStop and other US stocks.
Income in the three months to the end of February rose to £230.3m from £139.8m a year earlier and was up 11% from the second quarter.
The spread betting and derivatives platform said trading levels were “exceptional” in the quarter and that it had an “unprecedented” spike in new client demand in late January and early February.
IG said the jump in client numbers coincided with “heightened news flow” for certain US stocks. This was when day traders were indulging in a trading frenzy in GameStop and AMC Entertainment shares that rattled markets.
Trading platforms such as IG and Plus500 have boomed during the Covid-19 crisis amid volatile markets for shares, currencies and other markets. IG had a record 230,100 active clients in the third quarter, up 60% from a year earlier.
IG said its so-called significant opportunities portfolio rose 77% in the first nine months of the year to £114m and that it expected to hit its £160m target by the end of the year – a year ahead of schedule.
Chief Executive June Felix said: “I am delighted with the excellent results and progress we have made towards delivering on our strategic goals. The continued performance from the significant opportunities portfolio has been remarkable. The group is also continuing to grow the size of its high quality and loyal client base which represents a long-term asset to the group.”
IG said if financial market volatility gets back to normal, client activity and acquisition will reduce but performance will be underpinned by its bigger customer base.
The company’s shares rose 4.1% to 844.5p at 09:02 GMT.
