IG Group H2 FY2024 Results: 9% Revenue Jump, 32% Profit Rise

IG Group reports a strong rebound in H2 FY2024 results with a 9% revenue increase and a 32% profit surge. New leadership and strategic changes drive recovery.

Key Points

• Revenue and Profit Surge: IG Group saw a 9% revenue increase and a 32% profit boost in H2 FY2024.
• Leadership Changes: New CEO Breon Corcoran and other key appointments drive strategic updates.
• Operational Highlights: Despite overall revenue and trading declines, tastytrade achieved record revenue, and efficiency improvements were made.

IG Group Holdings Plc (LON), the leading UK-based online trading house, has announced a significant turnaround in its financial performance for the fiscal year 2024, ending May 31. The company’s results reveal a notable rebound in the year’s second half, reflecting improved market conditions and strategic organizational changes.

Revenues and Profit Surge

After a slow start to FY2024, IG Group reported total revenues of £987.3 million for the full year, marking a 3% decline from £1.02 billion in FY2023. However, the year’s second half showcased a robust recovery, with revenues reaching £514.7 million, a 9% increase from the first half’s £472.6 million.

The company’s net income increased dramatically, climbing 32% to £175.0 million in H2 FY2024 from £132.7 million in H1. This surge reflects a stronger performance despite challenging market conditions.

Financial Highlights

The group’s financial highlights for FY2024 include:

• Total Revenue: £987.3 million, down 3% year-over-year.
• Net Trading Revenue: £844.9 million, a 10% decline attributed to reduced trading activity.
• Net Interest Income: Increased to £142.4 million from £80.8 million in FY2023, driven by higher interest rates.
• Adjusted Profit Before Tax: £456.3 million, a 7% decrease from £490.5 million, with a margin of 46.2%.
• Statutory Profit Before Tax: £400.8 million, down 11% from £449.9 million.
• Adjusted Basic EPS: 90.3 pence, a 5% decrease from 94.7 pence.
• Total Capital Return: £422.7 million, with increased dividends and a new share buyback program of £150 million.

IG Group H2 FY2024 Results: 9% Revenue Jump, 32% Profit Rise

The second half of FY2024 saw significant leadership and operational changes, including the appointments of Breon Corcoran as CEO, Jody Dunn as COO, and Sarah Gore Langton as CRO. These changes were accompanied by a new organizational structure aimed at enhancing product velocity and client-centricity.

Key strategic and operational highlights include:

• Leadership Changes: The appointment of a new CEO and executive team members.
• Operational Improvements: Initiatives to boost efficiency and streamline operations.
• Risk Management: A 40% reduction in regulatory capital requirements in August 2023.
• Client Metrics: Total active clients decreased slightly to 346,200 from 358,300, with first trades down by 4%.
• tastytrade Performance: Record revenue of $251.8 million, a 23% increase year-over-year, with significant growth in net trading revenue and interest income.

CEO Breon Corcoran’s Outlook

Breon Corcoran, who took on the CEO role in January 2024, commented on the results, “IG has a sound position in large, growing markets, underpinned by an established brand and a loyal, high-value client base. However, I’ve also identified areas requiring change. We have lots of work to do to take IG to the next level and address our challenges.”

Corcoran emphasized the need for rapid adaptation in the competitive trading industry. His priorities include enhancing client-centricity, accelerating product development, and fostering a culture of ownership and accountability within the company.

Future Prospects

IG Group’s strong performance in the latter half of FY2024 sets a positive tone for the future. Focusing on strategic improvements and market adaptability, the company aims to leverage its solid foundation to drive sustained growth and profitability in the coming years.

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