IG Group interim revenues fall amid softer market conditions

25th Jan 2024 07:48

(Sharecast News) - Online trading platform IG Group reported a drop in interim revenues and profits on Thursday, citing "softer market conditions" and a strong comparative period.

In the six months to 30 November 2023, total revenue declined 9% on the same period a year earlier to £472.6m, with net trading revenue down 19% to £402.4m. IG said market volatility across a range of asset classes was "materially lower" than in the first half of the previous year.

Net interest income surged to £70.2m from £24.2m, driven by driven by higher interest rates.

Meanwhile, adjusted pre-tax profit was 21% lower at £205.7m and adjusted basic earnings per share fell to 38.9p from 49.7p.

IG said active clients declined to 296,300 from 312,000, while new clients acquired came in at 33,800, down from 37,500.

Acting chief executive Charlie Rozes said: "It's encouraging to see the benefits of our diversification strategy paying off, despite a mixed trading backdrop for our clients, driven by persistently low levels of market volatility in Q1 and Q2. While some of our businesses saw revenue weakness, others achieved strong results in the period.

"Our exposure to a wider range of revenue drivers will underpin further growth in the group as we deliver on our strategy. At the same time, we've taken action to control growth in the cost base, significantly reducing the rate of cost growth from FY23, yet still making selective investments in the business. As a result, we've maintained attractive profit margins in the period."