‘A record first half performance across all of our businesses, building on the momentum from the past  year and demonstrating the benefits of our increasingly global and diversified business model’ 

Highlights

1. A strong performance in H1 FY22 from continuing operations:

  • Net trading revenue increased 16% to £471.9 million (H1 FY21: £408.5 million). Excluding the foreign exchange hedging gain associated with the financing of the tastytrade acquisition, adjusted net trading revenue increased 14% to £466.1 million;
  • Profit before tax increased 8% to £245.2 million (H1 FY21: £227.8 million), while adjusted2profit before tax increased 13% to £258.0 million
  • Active clients increased 42% to 320,400 (H1 FY21: 225,200) reflecting the acquisition of tastytrade; 53,600 new clients acquired (H1 FY21: 60,800), lower than FY21, as anticipated in less volatile market conditions, but significantly higher than pre-pandemic client acquisition (H1 FY20: 26,400)
  • Client retention rates have remained consistent with historical averages, reflecting the high 
  • quality of clients onboarded in previous periods
  • Total operating costs increased 22% to £223.3 million (H1 FY21: £182.8 million). Adjusted total operating costs3 increased 13% to £205.7 million
  • Profit before tax margin for the first half was 52.0% (H1 FY21: 55.8%). Adjusted profit before tax margin was 55.3%
  • Basic EPS was 48.1 pence (H1 FY21: 50.7 pence). Adjusted basic EPS was 50.6p
  • Interim cash dividend of 12.96 pence per share (H1 FY21: 12.96 pence per share)

2. Continuing successful execution of IG’s growth strategy:

  • Revenue of £401.0 million in Core Markets+ (H1 FY21: £399.3 million) reflecting the high quality of our client base despite less volatile market conditions 
  • High Potential Markets revenue of £65.1 million, up 30% on the H1 FY21 pro forma4 revenue of £50.1 million
  • Non-OTC leveraged derivative revenue accounted for 16% of net trading revenue (H1 FY21: 5%)

3. Tastytrade continuing to build momentum:

  • Tastytrade showed strong growth, delivering revenue of £52.8 million in the 5 months since acquisition, increasing 29%; or 34% on a constant currency basis, on the comparable period in the prior year
  • Integration is well on-track with a focus on operations and marketing 

4. Continuing to deliver on our ESG strategy:

  • Announced our commitment to contribute 1% of post-tax profits to charitable initiatives from 2022 to 2025, with a focus on education and improving financial literacy 

5. Successful completion of a comprehensive debt refinancing and issuance, to provide greater capacity and support for future growth

6. Announced the proposed sale of Nadex and the Small Exchange, anticipated to close in Q4.

June Felix, Chief Executive, commented: 

“This has been a period of outstanding performance with record revenues and profits. Since we launched our new strategy three years ago, the group has transformed from a UK-centric, CFD focused firm, to a global financial technology company with a multi-product trading platform. 

One of the key factors behind the success of this transformation is our ‘global reach, local focus’ which allows us to act with agility to tailor our offerings. Our outstanding growth in Japan is a strong illustration of this approach.

The tastytrade acquisition in June 2021 brought about a step-change in our reach and product offering. Through our complementary capabilities, and buttressed by tastytrade’s award winning technology platform and compelling, distinctive educational content, IG is well positioned to take advantage of the global structural shifts toward self-directed trading and deliver continued sustainable growth.

Our ability to attract and retain a high-quality client base provides tangible and enduring value, and differentiates us from our competitors. As a group, we have multiple growth levers and a significant total addressable market. The ‘size of the prize’ is clear, and we are ready to capitalize on these opportunities as we continue to deliver on our strategic priorities and targets.

Finally, I would like to reiterate how IG is aligning its purpose with profit. Our recent pledge to contribute the equivalent of 1% of our post-tax profits to charitable causes is testament to our financial strength and demonstrates our commitment to supporting not just our clients, but the broader communities in which we operate. We believe that elevating collective financial literacy will reinforce our longevity as a business and simultaneously enhance potential outcomes for everyone in the communities in which we operate. We are here to win – for our client, for our investors, for the betterment of society.”