IG Group Announces Robust Six-Month Financial Results
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IG Group has shared its financial results for the six months between June and November 2024, as it rolled out a new decentralized system. The firm is now earning more revenue from over-the-counter (OTC) trades in the Middle East and APAC than from its home base in the UK and Ireland.
The short-term results show that the London-listed broker now splits its business into five regions: UK and Ireland, United States, Europe, APAC and Middle East, and Institutional and Emerging Markets.
UK And Ireland Brought In £138.3 Million, An 11% Rise
In Ireland and the UK division, the broker pulled in £138.3 million, an 11% increase compared to last year. APAC and the Middle East emerged as its second-biggest market, bringing in £131.4 million.
For OTC revenue, the Middle East and APAC came out on top, earning £129.2 million compared to £127.4 million from the UK and Ireland. In APAC, Japan took the lead, generating £43.8 million, while Australia brought in £40.1 million and Singapore £38.1 million.
The US market brought in £77.3 million, a rise of 18%, while Europe’s revenue stayed the same at £63.1 million. The Institutional and Emerging Markets division added £41.6 million. In the US, IG’s focus is on exchange-traded derivatives rather than OTC offerings.
In terms of revenue per client from OTC trading, the company earned £3,056 per trader in the UK and Ireland, while traders in the Middle East and APAC contributed £2,479 each. European clients generated £1,961, and those in the Institutional and Emerging Markets division topped all regions with £3,222 per client.
Singapore was once one of IG’s strongest markets. However, the broker no longer reports per-client revenue details for the city-state.
Total Revenue For The Period Was £522.5 Million, With £451.7 Million From Net Trading
IG noted in its report that trading revenue in the Institutional and Emerging Markets division rose by 20% with nearly all of it stemming from OTC derivatives. Although the number of active clients went down by 3%, revenue per client jumped by 23%.
According to earlier reports, IG’s total revenue reached £522.5 million, with £451.7 million from net trading during the first half of the fiscal year. Pre-tax profits also grew by 30% to £266.8 million.
IG spent less on marketing and ads, cutting costs by 4% to £42.2 million. Its staff numbers also dropped by 10%, leaving the company with 2,489 employees.
Recently, IG bought Freetrade, a stock trading application in a £160 million cash deal. This deal is expected to be finalized in mid-2025, depending on approval from regulators.
The broker noted that the acquisition will help grow its trading and investment offerings in the UK and reach more customers by including a “strong brand” to its direct-to-customer trading offerings.
