IG Group Reports Record Revenue in Q3, Bitcoin Trading Contributes 11%

Online brokerage IG group on Thursday published its results for the third quarter of fiscal 2018, that ended on the 28th of February. The company is marking a record quarter as cryptocurrency trading contributed to a sharp 30 percent increase in revenues to GBP 152.9 million ($216.7 million). The figure was also higher by 13 percent when compared to the previous quarter.

Cryptocurrency trading contributed 11 percent to the overall revenue of the company. As the price of Bitcoin rallied through the $10,000 mark, the firm’s clients have become very active in the market. As a reminder, at one point, IG Group was one of the biggest holders of BTC futures contracts in order to offset the exposure to client positions.

Revenues per client up 25%

One of the key performance indicators for any online brokerage, revenues per client have increased materially in the third quarter of fiscal 2018. IG Group has reported that the figure increased by 25 percent year-on-year, netting £1,482.

Higher levels of trading activity overall have contributed substantially to the results of the company. IG Group’s clients have recommitted to the market as overall volatility across multiple asset classes picked up materially. Active clients increased by four percent to 99,500, while the company also added 12,500 new OTC leveraged customers who placed their first trades in the period.

Crypto-trading slowdown

Since the end of January, when the first big leg lower in Bitcoin was executed, trading in cryptocurrencies decreased materially. Crypto trading appears to be very sensitive to price levels as traders are looking to enter the market primarily when prices are going up. The recent decline in the value of bitcoin has substantially decreased investors’ willingness to take risks.

Year-to-date results of IG Group are up by 16 percent when compared to the prior year with net trading revenue standing at £421.3 million. Cryptocurrency trading accounted for seven percent of revenue year to date. During the same period last year, the figure was 0.5 percent.

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