Spread betting and CFDs broker IG Group has just kicked off the second phase of its share buyback plan, worth up to £75 million.
In July, IG Group announced a £150 million share buyback program, with the first tranche of £75 million completed on September 9. The full buyback is expected to conclude by January 31, 2025, contingent on share price performance and other capital demands.
According to a filing with the London Stock Exchange, the purpose of this buyback is to reduce the company’s share capital. IG Group has enlisted UBS AG’s London Branch to handle this second tranche, with the purchased shares set to be held in treasury.
The plan is all in line with approvals from IG Group’s board, following their annual general meeting on 18 September 2024, and a total of 36,934,031 shares remain available for grab under this tranche.
Earlier this month, IG Group reported a 15% increase in revenue for the first quarter of its financial year, ending on August 31, 2024, driven by higher revenue per client amid market volatility in early August.
The online trading platform’s total revenue reached £278.9 million for the three-month period, compared to £242.9 million in the same quarter last year. The increase was supported by a surge in revenue from exchange-traded derivatives and over-the-counter (OTC) derivatives.
IG’s revenue from OTC derivatives rose 14% to £208.1 million, while exchange-traded derivatives saw a 20% jump to £59.6 million. Revenue from stock trading and investments increased by 8% to £11.2 million.
IG Group’s net interest income for the period was £36.8 million, up from £34.4 million a year earlier. The company’s exchange-traded derivatives arm, tastytrade, reported an 18% revenue increase to $70.8 million, or a 17% rise in GBP terms to £55.0 million.
Meanwhile, the group’s total active clients were slightly down by 1% year-on-year, totaling 263,200, compared to 267,000 in the same period last year.
IG Group reiterated its guidance for net operating income of £320-360 million for FY25, based on a cost base of £225 million.
IG Group’s operational highlights for the period include a plan to cut around 300 jobs, roughly 10% of its total workforce as of the end of the financial year.
The FTSE 250-listed firm also confirmed the appointment of Breon Corcoran as Chief Executive Officer, effective from 29 January 2024.
