Key Takeaways
IG Group Holdings Plc (LSE:IGG) lifted its full-year and medium-term revenue outlook, after a 19 percent jump in first-quarter organic revenue driven by elevated market volatility and strong growth in its customer base. Shares surged more than 8 percent in London trading.
"With commercial momentum accelerating, we are upgrading our guidance for 2026 and medium-term outlook,” Breon Corcoran, CEO of IG Group, said in a statement. He credited the performance to "disciplined execution of our strategy, a broader product offering and favourable trading conditions."
For the three months ended March 31, the online trading platform reported organic total revenue of £331.2 million. Net trading revenue on the same basis grew 25 percent to £306.5 million. The company also saw a 12 percent year-on-year increase in active customers.
The company now expects organic total revenue to grow between 10 and 15 percent in 2026, a significant increase from its previous forecast of high single-digit growth. Beyond 2026, the board anticipates compounding organic revenue at a rate of at least 10 percent per year. EBITDA margins are expected to be sustained in the mid-40s percent range.
The strong results were broad-based. OTC derivatives, the firm's largest division, saw net trading revenue climb 26 percent to £250.6 million. Organic stock trading and investments revenue jumped 38 percent to £15.0 million. The performance contrasts with a 22 percent decline in net interest income to £24.7 million, which the company said reflected lower interest rates and greater pass-through to customers.
The guidance upgrade comes as IG conducts a strategic review to evaluate acquisitions, its domicile and listing venues, and potential combinations of parts of the group with other industry players. The company is also proceeding with a £125 million share buyback program announced in March, having repurchased £14.9 million worth of shares as of May 15.
The upgraded forecast suggests management is confident that the structural drivers of growth, including marketing efficiency and multi-product adoption, will continue. Investors will watch the company's interim results on July 31 for further details on margin performance and the progress of its strategic review.
This article is for informational purposes only and does not constitute investment advice.
