IG Group’s H1 FY25 Revenue Jumps, Extends Buyback by £50M

IG Group (LON: IGG) reported total revenue of £522.5 million for the first half of fiscal 2025, ending on 30 November 2024, marking a year-over-year increase of 11 per cent. Its net trading revenue for the same period rose by 12 per cent to £451.7 million.

Finance Magnates earlier reported that IG generated £278.9 million as revenue in the first three months of the ongoing fiscal year. This means, the revenue for the second quarter came in at £243.6 million, a quarter-over-quarter decline of 12.6 per cent.

Massive Profits

The latest financial update from the London-headquartered broker also revealed that net income remained steady at £70.8 million, as higher client money balances offset the impact of lower interest rates.

The broker achieved a 30 per cent rise in adjusted pre-tax profits to £266.8 million, reflecting a profit margin of 51.1 per cent, compared to 43.5 per cent in the same period of the previous fiscal year. Additionally, statutory profit before taxes increased by 41 per cent to £249.3 million.

With the solid profits, its adjusted EPS also jumped by 42 per cent to 55.3 pence, whereas, the statutory basic EPS came in at 51.7 pence, compared to 33.4 pence in H1 FY24.

Its US-subsidiary tastytrade's revenue also jumped 15 per cent year-over-year to a record $90.5 million.

Another Buyback

IG had previously indicated plans to extend its ongoing share buyback programme. It has now confirmed an additional £50 million for the existing £150 million buyback, bringing the total to £200 million.

The entire buyback programme is expected to conclude in the second half of FY25.

The broker highlighted that it is returning £281 million to its shareholders in the form of dividends and share buybacks in the reported period. In H1 FY24, it returned £276 million to its shareholders.

Acquisitions and Shut Downs

The London-listed broker further confirmed the shuttering of Spectrum Markets, which was a multilateral trading facility, as it was “not delivering acceptable returns.” Meanwhile, it recently bought Freetrade in the UK for £160 million.

“Our focus remains on executing against the priorities we outlined in July 2024, which are to improve our product, embed a high-performance culture across the business and enhance efficiency,” said Breon Corcoran, IG Group’s CEO.

"Current trading has been satisfactory, and we remain confident of meeting consensus revenue and profit before tax expectations in FY25.”

The broker also highlighted that it has implemented a decentralised organisational model to enhance client centricity.