IG Group, a global online trading company providing CFDs and Forex, has released its financial results for the first half of the financial year 2023 (H1 FY23), six months ended 30 November 2022, showing an increase of 10% in total revenue on a YoY basis.
The total revenue reached £519.1 million, increasing 10% compared to £471.5 million in H1 FY22. The adjusted total revenue was also £519.1 million, up 11% compared to £465.7 million of the same period of FY22.
Net trading revenue increased 5% from £471.9 million in H1 FY22 to £494.9 million, and the adjusted net trading revenue up 6% compared to £466.1 million in H1 FY22.
Net interest income came in at £24.2 million, rising significantly across all business, while the group lost £0.4 million in H1 FY22.
Active clients reduced slightly from 320,400 in H1 FY22 to 312,000, while the number of new clients sharply down 30% from 53,600 to 37,500 on a yearly basis.
Total operating costs jump 25% from £223.3 million in H1 FY22 to £279.9 million. The adjusted total operating costs was £256.8 million, up 25% compared to £205.7 million in H1 FY22.
Profit before tax came in at £240.5 million, a decrease of 2% compared to £245.2 million on a YoY basis. The adjusted profit before tax was £260.7 million, slightly up 1% compared to £258.0 million in H1 FY22.
Profit before tax margins maintained high of 46.3%, while the tax margins in H1 FY22 was 52.0%. Adjusted profit before tax margin was 50.2%, compared to 55.4% in H1 FY22.
Basic EPS reduced 4.8% from 48.1 pence in H1 FY22 to 45.8 pence, and the adjusted basic EPS was 49.7 pence, slightly down 1.8% compared to 50.6 pence in H1 FY22.
In addition, £114.1 million shares was bought back in the half under the £150 million share buyback scheme announced in July 2022. Shares repurchased as at 24 January 2023 total Furthermore, the interim cash dividend will be increased from 12.96 pence per share in H1 FY22 to 13.26 pence per share.
“I’m extremely proud of our achievements in the period, having delivered on two critical elements of our strategy: diversified business growth and the return of excess capital to shareholders,” said June Felix, Chief Executive Officer at IG Group. “Non-OTC products now make a meaningful contribution of nearly 20% to our total revenue, and by the end of the half we had returned nearly £250 million to shareholders. We have also announced an extension to our share buyback today.”