IG Group generated £972.3 million in FY2022 revenues

The UK online trading leader said its “high-quality client base” continues to provide an enduring revenue stream, with client retention rates in line with historical averages.

IG Group stated its revenues were £972.3 million in the twelve months through May, higher 16 percent than £837.3 million in the same period in the prior year. The FTSE 250-listed firm added that excluding the FX hedging gain associated with the tastytrade acquisition, adjusted net trading revenue increased 14% to £966.5 million.

On an adjusted basis, which includes interest on client money, total revenue was also up 14% to £967.3 million from £845.5 million in the FY 2021.

Profit before tax was reported at £477.0 million, up 7 percent compared to £446.0 million in the FY2021. Additionally, the group’s adjusted profit before tax increased 14% to £494.3 million. Strong revenue performance combined with cost control delivered an adjusted profit before tax margin of 51%, IG noted.

Total active clients increased 31% to 381,500 from 291,200 a year earlier. Active clients, however, were lower by 2% on a pro forma basis though the figure remains significantly above pre-pandemic levels. First trades reduced as anticipated, but also remain well above pre-pandemic levels, the broker said.

This figure could be less impressive as it reflects the 53,600 new clients that tastytrade acquired in the same period. Further, tastytrade’s new client acquisitions somewhat moderated during the period as anticipated in less volatile market conditions.

IG Group said that the revenue generated in its core markets – countries regulated by the European Securities and Markets Authority, Australia, Singapore, Switzerland, Dubai and South Africa – amounted to £827.6 million. This figure was slightly up by two percent from £825.5 million the previous year.

June Felix, Chief Executive Officer, commented:

“This year’s record results show how we have achieved consistent, strong financial performance while we continue our journey to become a more diversified, innovative, global fintech. Our forward-looking strategy has positioned us well to capitalise on a significantly larger total addressable market and to take advantage of the ongoing shifts towards self-directed investing. We are now operating on an entirely new scale.

Our new Capital Allocation Framework crystallises our capital priorities to maintain a strong balance sheet, invest purposefully in our business, and meet the needs of key stakeholders. We are thrilled to announce our new shareholder distribution policy including a share buyback programme of up to £150 million.”

The FTSE 250-listed group described the performance of its OTC business as excellent across all regions while reflecting, in particular, increased trading in commodities and indices. The UK and EU reported their highest quarterly revenue since Q4 FY20, which represented the peak of the pandemic-related trading activity. Its Japanese unit also delivered another consecutive quarter of growth with record levels of revenue and active clients.