IG Group Posts £472.6 Million Revenue for H1 FY24

IG Group, a global online trading company providing CFDs and Forex, today released its financial results for the first half of its fiscal year 2024 ended November 30, 2023 (H1 FY24), revealing a decline in total revenue for the period.

During the six month, the Group registered a total revenue of £472.6 million, dropping 9% compared to £519.1 million in H1 FY23. Net trading revenue came in at £402.4 million, a decrease of 19% compared to £494.9 million in the year-ago period. However, the net interesting income jumped 190% from £24.2 million to £70.2 million on a year-on-year basis (YoY).

Adjusted net operating income for the period amounted to £472.9 million, decreasing 8% YoY from £516.2 million. The adjusted operating costs totaled £281.1 million, increasing 9% compared to £256.8 million in H1 FY23. As a result, the adjusted operating profits dropped 26% from £259.4 million to £191.8 million.

Adjusted profit before tax was £205.7 million, down 21% compared to £260.7 million in the same period of FY23. Adjusted basic earnings for share stood at 38.9 pence, down 22% compared to 49.7 pence in H1 FY23.

Active clients on the platform reached 296,300, a decrease of 5% compared to 312,000 in H1 FY23. While its new clients was 33,800, a decrease of 10% compared to 37,500 in the year-ago period.

Charlie Rozes, Acting Chief Executive Officer at IG Group, commented: "It's encouraging to see the benefits of our diversification strategy paying off, despite a mixed trading backdrop for our clients, driven by persistently low levels of market volatility in Q1 and Q2. While some of our businesses saw revenue weakness, others achieved strong results in the period. Our exposure to a wider range of revenue drivers will underpin further growth in the Group as we deliver on our strategy. At the same time, we've taken action to control growth in the cost base, significantly reducing the rate of cost growth from FY23, yet still making selective investments in the business. As a result, we've maintained attractive profit margins in the period.

"In addition to closely managing the cost base, our discipline around capital allocation saw us make further progress with our ongoing share buyback programme and also declare an increased interim dividend per share in line with our Capital Allocation Framework. We remain confident and optimistic about the outlook for IG and continue to be well positioned to benefit from the structural growth of self-directed trading and investing. We are the home of active traders worldwide, bringing exciting and innovative new products to market, backed by the best technology and trade execution."