IG Group (IGG) H2 2024 earnings summary

Executive summary

• Positioned in large, growing addressable markets with opportunities to expand geographically and across product lines.

• Revenue diversification and cost control improved earnings resilience in FY24, despite softer market conditions and declining OTC derivatives performance.

• Organisational restructuring and decentralised structure implemented to enhance client centricity, accountability, and efficiency.

• Focused on improving product velocity, culture, and efficiency to drive growth and regain market leadership.

• Tastytrade delivered record performance and is being rolled out internationally.

Financial highlights

• Total revenue £987.3m, down 3% year-over-year; adjusted profit before tax £456.3m, down 7%.

• Net trading revenue fell 10% to £844.9m, mainly due to weaker OTC derivatives.

• Adjusted basic EPS 90.3p, down 5% year-over-year; dividend per share 46.2p, up 2%.

• Net finance/interest income rose due to higher interest rates; effective tax rate increased to 23.2% from 19.2% last year.

• Returned £423m to shareholders (120% of adjusted profit after tax) via dividends and buybacks.

Outlook and guidance

• FY25 total revenue and adjusted PBT expected in line with market expectations; tax rate c.24%.

• New £150m share buyback program to be completed by January 2025.

• Focus remains on product investment, customer acquisition, and efficiency to accelerate revenue growth.