IG Group reports 11% revenue growth for strong fiscal 2025 start
IG Group sees 11% revenue growth and profit surge
IG Group has announced robust financial results for the six months ending November 30, 2024, marking a successful start to the 2025 fiscal year.
Favorable market conditions and effective cost management have enabled the company to achieve significant growth across key performance indicators.
Financial results
The company reported an 11% increase in revenue, reaching £522.5 million compared to £472.6 million for the same period last year. This growth was driven by higher client engagement, with net trading revenue up 12% to £451.7 million, reflecting increased revenue per client.
Profitability also saw substantial growth. Adjusted profit before tax rose 30% to £266.8 million, while statutory profit before tax increased 41% to £249.3 million. Earnings per share mirrored this trend, with adjusted EPS up 42% to 55.3 pence and statutory EPS rising 55% to 51.7 pence.
The company demonstrated its commitment to shareholder value, delivering a total capital return of £281 million through dividends and share buybacks. Additionally, IG extended its share buyback program by £50 million, bringing the total to £200 million, and increased its interim dividend to 13.86 pence per share.
Operational achievements
On the operational front, IG Group strengthened its trading and investment services in the UK by acquiring Freetrade, a commission-free platform aimed at expanding its customer base. The company also adopted a decentralized organizational structure to enhance client focus and streamline operations. Strategic cost management included exiting the Spectrum trading facility and reallocating resources to more profitable initiatives.
In the U.S., IG’s trading platform, tastytrade, reported a 15% year-on-year revenue increase, achieving a record $90.5 million in trading revenue. This highlights the platform’s growing popularity and success in a competitive market.
Despite a slight decrease in active clients to 295,300, the company maintained stable first trades at 33,900. Interest income remained steady at £70.8 million, with higher client balances offsetting lower interest rates.
Outlook and strategy
CEO Breon Corcoran expressed optimism about the company’s future, emphasizing the importance of expanding the active client base and leveraging the Freetrade acquisition to strengthen its presence in the UK. Corcoran reaffirmed the company’s focus on innovation, client-centric solutions, and sustainable growth.
With strong results in the first half of the fiscal year, IG Group is well-positioned for continued development and success in the second half of FY25.
