IG Group Posts 129% Jump in H1 FY21 Income

IG Group Posts 129% Jump in H1 FY21 Income

January 21, 2021

London-listed IG Group Holdings plc (LON:IGG) has published its interim results for the first half of FY2021, showing a massive jump across all key metrics. The trading platform operator 129 percent year-over-year jump in the pre-tax profits with £231.3 million from last year’s £101.2 million.

After paying the taxes, the profits remained £187.1 million, 127 percent higher than the previous year. However, the dividend per share remained the same at 12.96 pence.

IG already revealed its impressive trading revenue for the first two quarters in the financial year, which was consolidated in the half-yearly results. The net trading volume for the period came in at £416.9 million, compared to £249.9 million in the previous year. That translates to a jump of 67 percent.

It further detailed that £340.6 million in revenue was generated from the core markets, a year-on-year increase of 62 percent. Turnover from ‘significant opportunities’ also jumped by £36.3 million to £76.3 million.

Client Retention Rates Remained Comparable

The record revenue levels were achieved due to increasing client activities in the trading markets. The broker on-boarded 64,000 new clients in the period and the number of active traders also spiked 55 percent to 238,600.

Despite the jump in the client activities, IG detailed that new client retention rates remained ‘comparable to historical averages.’

The major increase in the trading activities and demand pushed the total operating costs at 22 percent higher to £188.2.

“We delivered record revenue and profit, made excellent progress against our strategic growth objectives, and continued to build a more sustainable and diversified global business,” IG chief June Felix said in a statement.”

“Demand for our products remained high, benefitting from favourable trading conditions, although it is the quality of our technology and the dedication of our people, throughout the global pandemic, that has enabled us to convert this demand into a step change in the size of our active client base.”

The broker was also well-prepared for Brexit and migrated the accounts of its EEA clients last month to IG Europe from the London-based entity.

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