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.

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