IG Group (IGG) H1 2025 earnings summary

Executive summary

• Revenue rose 11% year-over-year to £522.5m, driven by higher revenue per client amid supportive market conditions, while active client numbers remained flat.

• Adjusted profit before tax increased 30% to £266.8m, and adjusted EPS rose 42% to 55.3p, aided by cost control and share buybacks.

• Acquisition of Freetrade announced to strengthen the UK investment platform and broaden the customer base.

• Share buyback program extended by £50m to £200m, with £281m returned to shareholders in H1 FY25.

• Strategic priorities include product improvement, cultural transformation, and efficiency gains, with progress made but significant work ahead.

Financial highlights

• Net trading revenue reached £451.7m, up 12% year-on-year, with interest income at £70.8m and customer cash balances up 7% to £3.8bn.

• Adjusted operating costs declined 1% to £277.4m, reflecting efficiency measures and lower headcount.

• Adjusted profit after tax increased 30% to £201m; statutory profit after tax was £188m (+42% YoY); basic EPS: 51.7p (+55% YoY).

• Adjusted PBT margin improved to 51.1% (H1 FY24: 43.5%).

• Cash generated from operations: £240.6m (H1 FY24: £70.9m); own funds at period end: £1,048.1m.

Outlook and guidance

• On track to meet FY25 consensus revenue and profit before tax expectations; current trading described as satisfactory.

• Net trading revenue expected to remain broadly stable in H2, with some pressure on net interest income as rates decline.

• Costs anticipated to be modestly higher in H2 due to compensation scheme levy, increased marketing, digitization, and Freetrade acquisition costs.

• Full year tax rate expected to be approximately 25%.

• Capital generation from 30 November onwards expected to increase regulatory headroom.