The IG Group reported record profits

There was an announcement of a new shareholder distribution policy and the results came along with it.

The financial year ended on June 30th and the total revenue was up 16% compared to the previous year. This left a profit before taxation of almost half a billion dollars, a 7% increase.

Accounting for one-time hedging financial maneuvers associated with the group’s acquisition of Tastytrade, the total revenue was almost a billion dollars.

June Felix pointed out that the acquisition helped develop the Group’s US presence.

Felix explained that Tastytrade’s acquisition last year allowed them to accelerate their strategy to expand into exchange-traded products and establish their presence in the US, the largest retail financial market in the world.

The US has 14 million active traders across options, futures, and cash equities. The main US brokerages have over 100 million accounts in this market of self-directed, ambitious investors.

Felix said that the positive results were due to a company strategy that allowed IG Group to take advantage of new market opportunities and industry trends.

She said that this year’s record results show how they have achieved consistent, strong financial performance while they continue their journey to become a more diversified, innovative, global fintech.

Our forward-looking strategy has positioned us well to take advantage of the shifts towards self-directed investing and to take advantage of a significantly larger total addressable market. We are operating on a completely new scale.

Total operating costs increased to £501.9m from £393.4m, a 28% increase. The business said that the number was caused by M&A pressures.

The inclusion of Tastytrade’s cost base, one-off and recurring non-cash costs in relation to the Tastytrade acquisition and integration, as well as costs relating to the sale of Nadex and Small Exchange contributed to the 28% increase in Statutory operating costs.

The pro-forma account that adjusts for M&A changes amounts to a 2% reduction from the previous year, while the number of total active clients increased from 291,200 to 381,500, a 31% increase.

In the third quarter of the year, IG Group reported positive results.

Summary:

UK-based online trading platform IG Group’s profit before taxation rose 7% year-on-year to £477 million in the financial year ended March 2021. The company’s revenue rose 16% year-on-year to £973.1 million, while total operating costs increased 28% year-on-year to £501.9 million. IG Group also announced a new shareholder distribution policy which includes £150 million in share buybacks.