IG Group Tops £1Bn of Total Revenue for FY23

IG Group, a global online trading company providing CFDs and Forex, has today released its results for the financial year ended May 31, 2023 (FY23), with the total annual revenue topping £1 billion for the first time.

Financial Review:

• Total revenue reached £1,022.6 million for the fiscal year, increasing 5% compared to £973.1 million in FY22. Adjusted total revenue came in at £1,022.6 million, up 6% compared to £967.3 million on a yearly basis.

• Net trading revenue dropped by 3% from £972.3 million in FY22 to £941.8 million. Adjusted net trading revenue was also down 3% to £941.8 million.

• Total operating costs amounted £584.9 million, 17% higher than £501.9 million in last fiscal year. Adjusted total operating costs recorded £541.0 million, 16% higher than £464.9 million on a yearly basis.

• Interest income jumped £80.8 million from £0.8 million in FY22, which reflected higher interest rate.

• Profit before tax was £449.9 million, decreasing 6% compared to £477.0 million in the prior year. Adjusted profit before tax slightly dropped by 1% from £494.3 million to £490.5 million.

• Adjusted profit before tax margin stood at 48.0% at the end of FY23, compared to 51.1% in FY22.

• Basic EPS decreased by 6% from £92.9 to £86.9. Adjusted basic EPS slightly dropped by 2% from £96.3 to £94.7.

• Dividend was £45.2 per share, increasing 2% compared to £44.2 per share in FY22.

• Capital return totaled £363.4 million, including dividends paid and shares re-purchased during the period, compared to capital return of £186.2 million a year ago.

Charlie Rozes, Acting CEO at IG Group, commented: "We've performed well in the much more difficult market conditions that persisted through most of the past year, maintaining our leadership position in OTC derivatives while building further momentum in our product and geographic expansion. Total revenue exceeded £1 billion for the first time in IG's history, more than double our revenue in FY19 when we launched the strategy, while consistently achieving strong profit margins. A notable highlight has been our progress in the US, with the strong growth of tastytrade​ driving total revenue of £191.3 million, also an all-time high for IG.

"This combination of our operating performance and capital strength enabled us to return £363.4 million to shareholders during FY23 and we're pleased to announce today an increased cash dividend and a new £250 million share buyback programme."

Charlie added: "Looking ahead, we're well positioned to continue investing for growth given the strength and consistency of our cash flow and balance sheet. We keep a close watch on profit margins and in FY24 will continue to look for opportunities to achieve even greater cost efficiency. We're the home of active traders worldwide, and we are building a more sustainable, long-term business that delivers for all stakeholders."