IG posts 'record' revenues, profits dip
By Abigail Townsend
Date: Thursday 26 Jan 2023
(Sharecast News) - IG Group Holdings reported a slip in interim profits on Thursday, despite record revenues, as costs mounted.
The online trading firm said total revenues rose 10% to £519.1m, with net trading revenue ahead 5% at £494.9m. Net interest income, boosted by higher interest rates and high levels of client money, was £24.2m, compared to a loss of £0.4m a year previously.
IG said it had been a "record half of revenues", and proposed an interim dividend of 13.26p per share, a 2% improvement year-on-year. It also confirmed it would extend the share buyback by £50m, to a total of £200m.
However, pre-tax profits dipped 2% to £240.5m, after operating costs increased 25% to £279.9m. IG attributed the rise in costs to foreign exchange headwinds and increased headcount.
June Felix, chief executive, said: "I'm extremely proud of achievements in the period, having delivered on two critical elements of our strategy: diversified business growth and the return of excess capital to shareholders.
"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 our business model."
As at 0900 GMT, shares in the FTSE 250 firm were ahead 2% at 798p.
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