IG Group Shines in H1 of FY 2023: Impressive Revenue Growth
IG Group (LON: IGG) has just wrapped up an impressive first half of the financial year 2023, ending November 30, 2022. The company reported total revenue of £519.1 million, a staggering 10% increase from the previous year. Despite the impressive revenue boost, pre-tax profits slightly dipped by 2%.
However, the adjusted figures paint a brighter picture. The adjusted total revenue came in at £519.1 million, with a notable 11% increase. And the adjusted pre-tax profits also rose by 1% to an impressive £260.7 million. Unfortunately, the net profits took a slight hit, declining by 4% to £194.9 million.
Overall, IG Group continues to thrive, with solid growth in revenue and profits. Despite a small dip in pre-tax profits, the company remains in a strong position, poised for continued success in the future.
However, despite the solid revenue growth, the company faced challenges as operating costs rose by 25% to £279.9 million, impacting its net profits, which declined by 4% to £194.9 million. The rise in operating costs can be attributed to the integration of tasty trade, foreign exchange challenges, and an expanding headcount. Despite the dip in profits, the company’s basic earnings per share for the period came in at 45.8 pence, a 5% decrease from the previous year’s 48.1 pence. The adjusted earnings per share also took a small hit, standing at 49.7 pence, 2% lower.
The trading platform added 37,500 new clients in the period, which may seem like a slowdown compared to the previous year’s 53,600 new additions, but it still ended the period with a total of 312,000 clients. The company’s net trading revenue also saw growth, with a 5% increase to £494.9 million and an even bigger jump of 6% in the adjusted number. The net interest income also showed positive results, rising across all business divisions with a total gain of £24.2 million compared to a loss of £0.4 million in the previous year.
The Light Of Share BuyBack
“Despite a softening in trading demand due to the global economic environment, our high-quality clients have continued to find opportunities to trade, demonstrating the resilience of the business model,” IG’s Chief Executive, said.
“This is the result of our unwavering focus on investing in and prioritizing the delivery of best-in-class technology and platforms, innovation, client service, and marketing. All achieved while delivering significant profit margins and consistently generating healthy levels of cash and capital.,” June Felix added.
IG, the London-listed company, just made a big move to boost its shareholder value by extending its share buyback program with an additional £50 million allocation! That’s a total of £200 million now up for grabs.
This innovative program was first launched last July, and it’s already made a huge impact. In just a few short months, IG has repurchased an impressive £126.6 million in shares from the open market.
