Electronic trading major IG Group Holdings plc (LON:IGG) today posted a revenue update for the three months to 31 August 2022, representing the first quarter of the financial year ending 31 May 2023 ( Q1 FY23).

Total revenue for the quarter increased 11% to £241.8 million (Q1 FY22: £218.3 million). On a pro forma basis, which includes a full quarter of revenue from tastytrade in the comparative period, total revenue was up 7%.

Core Markets+ total revenue increased to £200.3 million in the quarter (Q1 FY22: £191.7 million), up 5%, as IG’s clients continued to actively trade through the period.

Japan continued to deliver strong revenue growth of 24% year over year, while the UK, EU, Australia and Emerging Markets also saw higher revenue over the same period.

High Potential Markets total revenue was £41.5 million in the quarter (Q1 FY22: £26.6 million), up 56%, reflecting an additional month of tastytrade as well as strong growth rates in Spectrum and IG US. On a pro forma basis, High Potential Markets total revenue growth was 18%.

tastytrade total revenue grew by 62%, or 15% on a pro forma basis. On a constant currency basis, pro forma total revenue increased to $41.1 million, up 1%, driven by additional interest income, offset by a reduction in trading revenue reflecting softer market conditions in the period.

As part of IG’s ongoing integration programme, a new Chief Marketing Officer for IG North America has been hired, to develop and expand IG’s marketing and branding capabilities in the US market.

Total active clients across all markets and products in the quarter were 279,300, in line with prior year, (Q1 FY22: 279,100) reflecting the retention of the significantly increased number of active clients over the past two years.

The Group onboarded 19,200 new clients in the period, down 27% (Q1 FY22: 26,200) as anticipated. The quality of the new clients remains consistent with those onboarded in previous quarters.

In July, the Board announced its new capital allocation framework which balances delivering sustainable returns to shareholders with ongoing investment in the business to execute our growth strategy. As part of the new framework, IG announced a £150 million share buyback programme, which commenced during the quarter. As at 13th September, approximately 3.7 million shares have been re-purchased, at a cost of £30.2 million. The programme is expected to be substantially completed in FY23.

The Group remains confident of achieving its medium-term targets for the Core Markets+ and High Potential Markets portfolios.