IG Group’s profits in the financial trading business reached new heights in the fiscal year ended May 31, 2022.
The result came with the announcement of a new shareholder distribution policy, including a £ 150m ($ 179.3 / € 175.9) share buyback.
Total revenue for the fiscal year was £ 973.1 million, an increase of 16% compared to £ 837.6m in the previous year. This resulted in pre-tax profit of £ 477m, up 7% year-on-year.
Considering the temporary hedging operations associated with the Group’s acquisition of trading media business Tastytrade, total revenue was £ 967.3 million.
June Felix, CEO of IG Group, noted that the acquisition helped increase the group’s presence in the United States.
“The acquisition of Tastytrade last year has helped us accelerate our strategy to expand into listed trading products and establish our presence in the United States, the world’s largest retail financial market,” explains Felix.
“In this context, the United States has 14 million active traders across options, futures and cash equity. This voluntary and ambitious investor market is one of the leading securities companies in the United States. We have over 100 million accounts. “
Felix said the positive results are due to corporate strategies that enable IG Group to take advantage of new market opportunities and industry trends.
“This year’s record results show how we have achieved consistent and strong financial performance while continuing our journey to become a more diverse and innovative global fintech,” she said. I did.
“Our positive strategy is well-positioned to take advantage of the huge total addressable market and the ongoing shift to self-investment. We are currently operating on a whole new scale. “
However, total operating costs increased by 28% from £ 393.4 million in 2021 to £ 501.9 million. The business has blamed M & A pressure on that number.
“Legal operating costs were £ 501.9m, up 28% from FY2009, with Tastytrade’s cost base, temporary and recurring non-cash costs associated with Tastytrade’s acquisition and integration, and Nadex. “Small exchanges,” the report said.
Another potential black spot was the total number of active clients. That number increased from 291,200 to 381,500, an increase of 31%. Proformer accounts that coordinate M & A changes will be reduced by 2% from the previous year.
IG Group reported similar positive results in the third quarter of this year.
