25th Sep 2025 10:00
(Alliance News) - IG Group Holdings PLC on Thursday backed guidance for higher annual revenue, despite first-quarter earnings declining on "a tough prior year comparative", according to IG.
The London-based online trading platform operator posted GBP267.9 million in revenue for the three months that ended August 31, down 3.9% from GBP278.9 million a year earlier. On an organic basis, revenue fell 6.8% to GBP259.9 million from GBP278.9 million.
IG said net trading revenue accounted for GBP238.4 million of the total, falling 1.5% from GBP242.1 million on-year. Organic trading revenue was 4.2% lower at GBP231.9 million. The firm maintained this was in line with expectations, citing "lower interest rates and greater pass-through to customers."
Net interest income shrunk by 20% on a reported basis to GBP29.5 million from GBP36.8 million, and by 24% on an organic basis to GBP28.0 million.
Despite the downturn, IG noted "strong customer income retention" and a promising performance in its Freetrade business, which was acquired in April. Freetrade contributed GBP6.5 million to revenue during the three months to August 31, versus GBP3.7 million in the two months ended May 31. "Strong performance was supported by the rollout of new products and features, including the first phase of its mutual fund offering," IG said.
The trading platform operator sees full-year performance in line with market expectations. According to company-compiled consensus on IG's website, revenue is forecast at GBP1.11 billion in financial 2026, up from GBP1.08 billion in financial 2025. Earnings per share is forecast at 111.4 pence, versus 106.3p on-year.
IG added that it continues to expect net interest income of about GBP100 million for the full year, down from GBP133.1 million in financial 2025.
As of Wednesday, the company had repurchased 1.5 million shares at a cost of GBP16.8 million under a GBP125 million buyback scheme, targeted to complete by January 30. IG might extend the scheme later in financial 2026, depending on share price performance and capital demands, it said.
The firm's shares were down 0.7% at 1,057.00 pence on Thursday morning in London, having gained 16% over the last 12 months.
By Holly Munks, Alliance News reporter
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