IG Group reports stable H1 earnings, hikes share buyback to £200M

abdelaziz Fathi

Spread betting and CFDs broker IG Group plc has today released its financial results for the first half of its fiscal year ending on 30 November 2022.

The UK online trading leader said its performance was driven by the continued increased levels of trading activity from existing clients, as well as the growing number of new customers.

IG Group stated its total revenues were £519 million in the six months through November, in line with expectations and higher by 10 percent than £465 million for 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 5% to £495 million.

Profit before tax was reported at £240.5 million, down 2 percent compared to £245.2 million in the first half of FY2021. Additionally, the group’s adjusted profit before tax increased 1% to £260.7 million, IG noted.

Total active clients reduced slightly in the first half as anticipated in less volatile market conditions, coming in at 312,000 relative to 320,400 clients a year ago. This figure could be even less impressive as it reflects the 53,600 new clients that tastytrade acquired in the same period.

June Felix, the Chief Executive Officer at IG Group, comments: “Non-OTC products now make a meaningful contribution of nearly 20% to our total revenue, and by the end of the half we had returned nearly £250 million to shareholders. We have also announced an extension to our share buyback today. Despite a softening in trading demand due to the global economic environment, our high-quality clients have continued to find opportunities to trade, demonstrating the resilience of the business model.”

On a half-yearly scale, tastytrade contributed £77.9 million in H1 revenues, up 26 percent from £61.8 million a year ago. Performance was driven by higher interest income as well as FX tailwinds.

IG Group has completed the acquisition of Chicago-based fintech startup tastytrade in June 2022. The $1 billion deal included $300 million in cash and 61 million IG shares, which were valued at this time at $700 million.

IG Group said that the H1 revenue generated in its core markets – countries regulated by the European Securities and Markets Authority, Australia, Singapore, Switzerland, Dubai and South Africa – amounted to £424.3 million. This figure was slightly up form £400.3 million in the corresponding period last year, reflecting the impact of ASIC regulation in Australia.

Finally, Europe’s biggest spread better said it extended its share buyback by £50 million to £200 million and that it expected its full-year performance to be in line with expectations.

Read this next

Fintech

Telegram CEO’s Bitcoin stash valued in hundreds of millions

Telegram CEO Pavel Durov revealed that he has held several hundred million dollars in fiat and bitcoin for the past decade.

Digital Assets

Bitcoin drops below $60K as halving just 300 blocks away

Bitcoin fell below the $60,000 mark on April 17, just days before a scheduled reduction in mining rewards, known as the “halving,” which is set to occur on April 20.

Chainwire

New Meme Coin ICO Dogeverse Raises $6 Million After Completing Coinsult Audit

A new multichain meme coin, Dogeverse, has raised $6 million in its presale and recently passed a smart contract audit.

The new meme coin leverages bridge technology, ensuring the token is available across the most prominent on-chain markets.

Retail FX

Interactive Brokers posts Q1 earnings, raises dividend

Interactive Brokers Group Inc (NASDAQ:IBKR) announced its first-quarter financial results for the period ending March 31, 2024. The leading automated global electronic broker reported a GAAP diluted EPS of $1.61 and an adjusted EPS of $1.64.

Fundamental Analysis, Tech and Fundamental

Global FX Market Summary: USD, FED, Gold  April 17 ,2024

The Fed’s hawkish stance on interest rates is strengthening the US dollar while central banks globally grapple with inflation and economic growth.

Digital Assets

Kraken launches self-custodial wallet, joining competitors like Coinbase

Kraken, the second-largest U.S.-based cryptocurrency exchange, has introduced its own digital wallet, aligning its offerings with those of competitors like Coinbase.

blockdag

BlockDAG’s Lunar Teaser Skyrockets Presale to $17.8M! Polkadot’s Price Soars with Optimism & Chainlink Unveils Updates

Polkadot (DOT) price prediction expects a rally as DOT garners attention for its high development activity, whereas Chainlink launches a new bridging tool. Meanwhile, BlockDAG has entered stage 9, with an impressive $17.8 million garnered in its ongoing presale.

Chainwire

MetaWin Announces Innovative TOKENIZED Tesla Cybertruck Contest on Ethereum’s Base Layer 2 Blockchain

This NFT, which represents full ownership rights to The Cybertruck, has been launched on the Ethereum Base Layer 2 blockchain operated by cryptocurrency giant Coinbase.

Tech and Fundamental, Technical Analysis

S&P 500 index Technical Analysis Report 17 April, 2024

S&P 500 index can be expected to fall further toward the next support level 5000.00, followed by 4940.00 (which reversed the price twice in February).

<