IG Group backs outlook despite 14% third-quarter revenue decline

IG Group Holdings PLC on Thursday reaffirmed its annual and medium-term guidance despite reporting a double-digit-percentage fall in third-quarter revenue, as the trading platform operator outlined plans to expand into prediction markets and broaden its product offering.

The London-based shares and contracts-for-difference trading platform said total revenue fell 14% to £240.5 million in the third quarter of 2026 from £280.1 million a year earlier. Revenue was down 21% from £302.8 million in the second quarter.

Net trading revenue declined 15% to £212.3 million from £249.5 million a year earlier, while net interest income fell 7.5% to £28.2 million from £30.5 million.

Over-the-counter derivatives revenue dropped 18% to £156.1 million from £189.9 million, while stock trading and investments revenue fell 31% to £13.6 million from £19.7 million, reflecting softer market conditions and reduced trading activity.

Monthly active customers nevertheless increased 17% to 864,700 from 741,500, while total assets under administration reached a record £22.4 billion at the end of September, up from £21.5 billion at the end of June.

IG reaffirmed its 2026 guidance for total revenue growth in the mid-single-digit percentage range and an earnings before interest, tax, depreciation and amortisation margin in the low-40s percentage range, excluding one-off costs.

IG also maintained its medium-term target for organic annual revenue growth of more than 10% and an Ebitda margin in the mid-40s percentage range, excluding its proposed acquisition of US fantasy sports and prediction markets operator Underdog Sports Holding Inc. IG agreed in June to buy Underdog for up to USD1.3 billion.

At its capital markets event on Thursday, IG outlined plans to expand its unified trading, investing and cryptocurrency platform beyond the UK.

The company expects to launch financial prediction markets for UK professional clients in the fourth quarter of 2026. It also has applied for a UK gambling licence, with plans to expand into political, entertainment and sports prediction markets in early 2027.

IG said its proposed acquisition of Underdog and planned move of domicile to Jersey remain on track for completion in late 2026 or early 2027.

Under its updated capital allocation framework, IG reiterated its commitment to a progressive dividend and said share buybacks are expected to resume in 2027, subject to share price performance and other capital requirements.

Chief Executive Officer Breon Corcoran said: "Trading, investing and entertainment are converging, and IG is well placed to capitalise on the opportunity."

He added: "Today we will set out how we will deliver our next phase of growth - broadening and enriching our propositions, investing in our brands and increasing efficiency."

IG Group shares were up 0.5% at 936.00 pence in London on Thursday morning.

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