IG Group Reports Record Revenues and Profit Growth in H1 FY25

IG Group reports record H1 FY25 revenues of £522.5 million, driven by strong profits and strategic growth.

Key Points: 

• Strong Financial Performance: IG Group saw an 11% revenue increase to £522.5 million and a 30% rise in profit before tax.
• Strategic Moves: IG Group strengthened its UK offerings by acquiring Freetrade and exiting underperforming initiatives.

IG Group, the UK’s online trading brokerage, has posted impressive results for the first half of fiscal year 2025, ending 30 November 2024. The company reported a significant 11% increase in total revenues, reaching £522.5 million, alongside a 30% rise in adjusted profit before tax, marking a strong performance amid supportive market conditions.

IG Group Reports Record Revenues and Profit Growth in H1 FY25

IG Group’s financial performance reflected a favorable market environment and cost reductions, leading to notable growth in both revenue and profit.

• Total revenue reached £522.5 million, up 11% compared to the £472.6 million reported in H1 FY24.
• Net trading revenue increased by 12% to £451.7 million, driven by higher revenue per client, compared to £402.4 million in the same period last year.
• Net interest income remained stable at £70.8 million, slightly increasing from £70.2 million in H1 FY24, with higher client money balances offsetting lower interest rates.
• Adjusted profit before tax surged 30% to £266.8 million, up from £205.7 million in H1 FY24, reflecting a strong operating margin of 51.1%.
• Statutory profit before tax rose 41% to £249.3 million, up from £176.4 million in H1 FY24.
• Adjusted basic earnings per share (EPS) climbed 42% to 55.3 pence, compared to 38.9 pence in the prior year, while statutory EPS increased by 55% to 51.7 pence.

In addition to the solid performance, IG Group returned £281 million to shareholders through dividends and share repurchases, up from £276 million in H1 FY24. The company has also increased its interim dividend to 13.86 pence per share, up from 13.56 pence in the previous year, and extended its share buyback program by £50 million to a total of £200 million for the second half of FY25.

Strategic and Operational Developments

IG Group’s CEO, Breon Corcoran, highlighted its continued focus on enhancing its product offerings and operational efficiency.

The company made significant strides towards its strategic goals laid out in July 2024, including a focus on embedding a high-performance culture and expanding its product range. One key development was the announcement of the acquisition of Freetrade, a fast-growing, commission-free UK self-directed investment platform. This acquisition will strengthen IG’s UK trading and investment proposition and provide access to new customer segments.

Additionally, IG implemented a decentralized organizational model to improve client centricity and enhance operational agility. The company also took decisive steps to exit initiatives not generating acceptable returns, such as the Spectrum multilateral trading facility. Moving forward, the company will offer Spectrum’s core products more efficiently over the counter.

Client Metrics and Performance of tastytrade

Despite the strong overall financial performance, IG saw a slight decline in active clients, with total active clients at 295,300, down marginally from 296,300 in H1 FY24. First trades remained flat at 33,900, compared to 33,800 last year.

On a positive note, the performance of tastytrade, IG’s US-based trading platform, was strong. Tastytrade saw a 15% year-on-year increase in total revenue, with trading revenue hitting a record $90.5 million, up from $72.9 million in H1 FY24. The platform’s interest income remained stable at $45.3 million, slightly up from $44.9 million in the same period last year.

Breon Corcoran, CEO of IG Group, expressed optimism about the company’s prospects for the remainder of FY25. He stated, “First half performance reflected more supportive market conditions, but we have work to do to grow active customers, which will be necessary to deliver sustainably stronger growth. Our focus remains on executing against the priorities we outlined in July 2024: to improve our product, embed a high-performance culture, and enhance efficiency.”

Corcoran also reiterated the company’s confidence in meeting consensus revenue and profit-before-tax expectations for the full fiscal year. “Current trading has been satisfactory, and we remain confident of meeting consensus expectations for FY25. I look forward to updating you on progress in the second half of the year.”

IG Group’s solid first-half performance, marked by record revenues, strong profit growth, and strategic acquisitions, positions the company well for the second half of FY25 as it continues to enhance its product offerings and pursue sustainable growth.

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