IG Group grapples with a 9% revenue dip in H1 FY24 amid market volatility. Cost-cutting measures and leadership changes signal resilience.
The leading Forex broker IG Group published its financial report for the first six months of the fiscal year 2024, a steep decline in total revenue from £519.1 million to £472.6 million, representing a 9% drop on a gross basis.
This is attributed to a very subdued market volatility across diverse assets. Also, net trading revenue decreased by 19% to £402.4 million from the previous year's figure of £494.9m.
On the other hand, net interest income skyrocketed to £70.2 million, up from £24.2 million in H1 FY 23, due to the high-interest rate span on most markets. As expected, net client acquisition moderated markedly in a more stable market; active clients decreased to 296,300 from 312,000 in H1 FY23.
During this tough time, contrary to the general trend, Tastytrade, a subsidiary firm of this UK-based broker jumped by an impressive magnitude of 29% resulting in a $117.8 million total revenue figure.
The cost-saving initiatives undertaken by this FCA-regulated broker include plans to eradicate around 300 jobs, which is equivalent to about 10% of their workforce, and various structural savings estimated at £10 million in the year when such measures became effective.
The H1 FY24 profit before tax adjusted was £205.7 million, 21% less than the amount registered in the previous year, which amounted to £360.7 million.
This low-spread broker confirmed the appointment of Breon Corcoran as Chief Executive Officer from January 29, 2024. This no-commission broker also repurchased £149.2 million of shares under its £250 million share buyback plan during the period.
Despite such saddle, this multi-asset broker remains agile with uplifting strategies for the dynamic market after reporting 10% revenue gains in the six months ending in November 2022. Stay updated on our forex broker news for more information on IG Group.