IG Group sees 9% recovery in revenue, 32% rise in earnings in H2 2024

After a rather slow first half of the 2024 financial year, leading UK-based online trading house IG Group (LON:IGG) reported its full-year 2024 results (financial year to end May 31) indicating a very strong recovery on both the top and bottom lines during the second half of the year.

IG Group’s revenue of £987.3m in 2024 was down 3% from £1.02bn in 2023, but again this was mainly due to a slow first half of 2024. The second half of the year – covering the months December 2023 to May 2024 – IG Group revenue was £514.7m, up 9% on the previous half (£472.6m).

Similarly, net income of £175.0m at IG Group in the second half of 2024 was up 32% from £132.7m in the first half of 2024.

All of this was achieved during a time when IG went outside the company to hire a new CEO in Breon Corcoran, while also naming Jody Dunn as COO and Sarah Gore Langton as CRO.

IG Group Financials for FY2024

IG said it delivered resilient results in slower market conditions and well-controlled costs during a period of leadership and organizational change.

• Total revenue £987.3m (FY23: £1,022.6m), down 3%.
• Net trading income £844.9m (FY23: £941.8m), down 10% due to lower trading activity.
• Net interest income increased to £142.4m (FY23: £80.8m) reflecting higher interest rates.
• Adjusted pre-tax profit of £456.3m (FY23: £490.5m), down 7%. Adjusted pre-tax profit margin was within the mid-to-high 40s guidance range at 46.2% (FY23: 48.0%). Statutory profit before tax £400.8m (FY23: £449.9m), down 11%.
• Adjusted core EPS of 90.3 pence (FY23: 94.7 pence), down 5% on FY23. Statutory core EPS of 79.4 pence (FY23: 86.9 pence).
• Total capital return of £422.7m broken down into dividends paid and shares repurchased during the period (FY23: £363.4m).
• It proposed an increased total dividend per share of 46.2p (FY23: 45.2p) and a new share buyback program of £150m to be completed by 31 January 2025.

Strategic and operational points

• Following the appointment of Breon Corcoran as CEO in January 2024, a new organizational structure was recently created to enhance product velocity and customer centricity. Initiated work to change IG culture to increase ownership and accountability.
• We started an operational improvement program in October 2023 and continue to explore opportunities to improve efficiency.
• The high quality and strength of the risk management framework and controls is demonstrated by the 40% reduction in the Group’s regulatory capital requirements in August 2023.
• Total active customers of 346,200 (FY23: 358,300) declined slightly in markets that were less volatile. First transactions of 69,900 (FY23: 72,600) were down 4%.
• tastytrade delivered record total revenue which rose 23% to $251.8m (£200.6m) from $205.0m in FY23 (£170.3m) reflecting a 10% increase in net trading revenue (160 .1 million dollars) and a 53% increase in interest income ($91.7 million). .

IG Group Financial Summary (Continuing Operations)

Breon Corcoran, CEO, commented:

“IG has a healthy position in large, growing markets, supported by an established brand and a loyal, high-value customer base. However, I have also identified areas that require change. We have a lot of work to do to take IG to the next level and meet the challenges we face.

“We operate in a competitive and rapidly changing industry landscape. We need to move with pace to get closer to our customers, get them the products they want faster, improve efficiency and add scale to win. My initial priorities are to increase customer centricity, accelerate product velocity, and develop our culture to increase ownership and accountability.

“I am excited by the enthusiasm of our people and their commitment to deliver sustainable, stronger growth. I am confident that we have a solid platform on which to build.”

IG Group’s full financial year 2024 results announcement you can see here.