Half Year 2025 IG Group Holdings PLC Earnings Call Transcript
Key Points
- Total revenue increased by 11% year-on-year, driven by stronger market conditions and higher revenue per customer.
- Tastytrade delivered another consecutive half of record trading revenue, up 24% in US dollars.
- Adjusted profit before tax increased by 30%, and EPS was up 42%, reflecting strong financial performance.
- The company announced the proposed acquisition of Freetrade, enhancing its platform for growth in the UK self-directed investment market.
- IG Group Holdings PLC (IGGHY) extended its share buyback program by an extra GBP50 million to GBP200 million, demonstrating a commitment to shareholder returns.
- Active client numbers remained flat, indicating a need for growth in the customer base to achieve sustainable growth.
- Over-the-counter active clients were down 3%, and first trades dropped 15%, highlighting challenges in this segment.
- The company's penetration in the B2C exchange-traded futures and options market remains low, with less than 3% market share.
- The crypto offering is limited, and the company missed out on the recent market uplift in this area.
- The decision to exit Spectrum and other initiatives not delivering acceptable returns indicates challenges in achieving desired outcomes from certain projects.
Good morning, and welcome to our results presentation for the first half of the 2025 financial year. I'm Breon Corcoran, Chief Executive. Thank you for taking the time to join us this morning. I'm joined by Clifford Abrahams, our Chief Financial Officer. Clifford joined us last month, I'm delighted to welcome him to IG. We'll be running through the presentation together this morning.
Starting with today's agenda, I'll kick off with some highlights on the first half and hand over to Clifford to take you through the details of our financial performance. I'll return to look at the progress we've made across the various priorities I presented in July before opening the line for questions.
Beginning with highlights on slide 4. Looking back over the last six months, we've made progress. Personally, I'd say it was a 6 out of 10. Total revenue was up 11%, reflecting stronger market conditions, which resulted in higher revenue per customer, but active client numbers were flat.
Performance in the period
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