IG Group reports record revenue and profit in H1

The company recorded revenue figures of £471.9m, up 16% from the corresponding period the year before. The majority of the revenue total – £398.4m – came from over the counter (OTC) leveraged derivatives.

Exchange-traded derivatives added £57.6m, while stock trading and investments accounted for £15.9m.

The UK proved to be the most lucrative region during the period, generating £177.5m. This was followed by the US with £61.4m, the EU with £55.1m and Australia with £48.8m.

Operating costs for the period came to £222.3m, a 22.0% increase on 2021. Fixed remuneration of £69.0m was the biggest expense, followed by £38.0m of advertising and marketing costs. Revenue costs were £19.0m, IT costs came to £15.7m, while depreciation and amortisation amounted to £13.9m.

Operating profit totaled £251.0m. After accounting for £42.6m of tax expenses, £4.8m finance costs and £1.0m of losses from associates, net profit for the period was £202.6m – an 8.0% increase.

Chief executive June Felix said: “This has been a period of outstanding performance with record revenues and profits. Since we launched our new strategy three years ago, the group has transformed from a UK-centric, CFD focused firm, to a global financial technology company with a multi-product trading platform.

“We believe that elevating collective financial literacy will reinforce our longevity as a business and simultaneously enhance potential outcomes for everyone in the communities in which we operate. We are here to win – for our client, for our investors, for the betterment of society.”

IG Group also completed its acquisition of brokerage and investor education platform Tastytrade during the period, finalising the deal in June 2021.

Felix added: “The Tastytrade acquisition in June 2021 brought about a step-change in our reach and product offering. Through our complementary capabilities, and buttressed by Tastytrade’s award-winning technology platform and compelling, distinctive educational content, IG is well positioned to take advantage of the global structural shifts toward self-directed trading and deliver continued sustainable growth.”