IG Group's Total Revenue Sees a 9% YoY Decline in H1 FY24

The world’s leading CFD&Forex trading provider IG Group posted its financial results for the first half of the 2024 fiscal year (H1 FY24), which ended November 30, 2023. The company experienced a drop in total revenue for the period.

Specifically, IG Group recorded a total revenue of £472.6 million during the period, a decline of 9% from H1 FY2023’s £519.1 million. While a net trading revenue of £402.4 was down 19% from £494.9 million recorded in the same period of 2023, the net interest income was up 190% year-on-year (YoY) to £70.2 million from £24.2 million.

Adjusted net operating income for H1 FY2024 came in at £472.9 million, a decrease of 8% from £516.2 million for H1 FY2023. Adjusted operating costs amounted to £281.1 million, an increase of 9% YoY from £256.8 million. As a result, adjusted operating profits saw a drop of 26% from £259.4 million to £191.8 million.

Adjusted pre-tax profit decreased 21% to  £205.7 million from H1 FY23’s £260.7 million. Adjusted basic earnings for share declined 22% to 38.9 pence from 49.7 pence in H1 FY23.

Active clients reached 296,300, representing a 5% decrease from 312,000 in H1 FY23. New clients for the period were 33,800, decreasing by 10% from 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.”