Shares in IG Group Holdings Plc (LSE:IGG), the online trading platform, jumped 8.4% to 1,708p after the company materially upgraded both near-term and medium-term guidance on the back of a first quarter that saw trading revenues grow 25% year on year.
Organic revenues rose 19% in the period, with first trades up 63% and active customers growing 12%, reflecting what Panmure Liberum described as ongoing improvements in marketing efficiency.
Customer income retention in the over-the-counter business remained strong in the mid-80s percent range, supporting earnings quality, while assets under administration across IG’s platforms grew 20% organically to £19.3 billion.
Momentum has continued into the second quarter, with assets climbing further to £20.7 billion by 30 April.
Freetrade, the retail investment platform acquired by IG, saw assets reach £3.6 billion at quarter-end, up 54% year on year, though revenue dipped as customers rotated into UK assets, funds, and cash amid macroeconomic uncertainty, reducing foreign exchange fee income.
The company raised full-year organic revenue guidance to 10% to 15% growth, up from a previous steer of high single digits, with net interest income now expected at £110 million to £120 million and EBITDA margins in the mid-40s per cent range.
More significantly, management upgraded its medium-term outlook, guiding for organic revenue growth of at least 10% per annum beyond 2026 while maintaining those margins, citing structural gains in marketing efficiency, multi-product adoption and retention.
IG also launched an institutional white-label offering in May, onboarding its first partner, and announced a new £125 million buyback programme.
Panmure Liberum, which rates the stock a ‘buy’ with a 1,530p target price, acknowledged that much of the operational momentum is reflected in a share price that has risen 47% in six months, but said a combination of upgraded guidance, accelerating customer growth and a strategic review due in the autumn provided multiple catalysts to support further re-rating.
