Three key
subsidiaries of British financial services group IG have posted improved profit
figures for fiscal year 2025 (FY25), marking a recovery from the mixed results
reported a year earlier. The results also align with a nearly 25% jump in net
profit for the entire publicly listed group (LSE: IGG), which reached £380
million.
IG Subsidiaries Post
Profit Gains In FY25
IG Markets
Limited, the group’s main over-the-counter derivatives business, saw profit
jump to £131.2 million from £102.5 million the previous year. The company’s net
trading revenue climbed to £384.9 million, up from £343.0 million in fiscal
2024.
IG Index
Limited, which offers financial spread betting to UK customers, generated
profits of £92.7 million in fiscal 2025, compared to £73.0 million the year
before. Net trading revenue reached £228.3 million, up from £211.7 million.
The
performance also represents a turnaround from 2023, when both IG Markets and IG
Index had
reported declining profits due to what management called “inflationary
pressures, higher interest rates, increased market volatility , and a decline in
global equity prices.”
The third
entity, IG Trading and Investments Limited, which handles stock trading and
investment products after being spun off from IG Markets in 2022, continued its
growth trajectory too. Profit after tax hit £21.9 million versus £20.7 million
in the prior year, while revenue increased to £27.2 million from £20.4 million.
IG Group
UK Subsidiaries – Financial Performance Comparison
|
Metric |
IG Markets Limited |
IG Index Limited |
IG |
|
Net Trading Revenue |
|||
|
FY25 |
£384.9m |
£228.3m |
£27.2m |
|
FY24 |
£343.0m |
£211.7m |
£20.4m |
|
Change |
+£41.9m (+12.2%) |
+£16.6m (+7.8%) |
+£6.8m (+33.3%) |
|
Operating Profit |
|||
|
FY25 |
£140.5m |
£127.2m |
£23.8m |
|
FY24 |
£106.1m |
£102.3m |
£20.5m |
|
Change |
+£34.4m (+32.4%) |
+£24.9m (+24.3%) |
+£3.3m (+16.1%) |
|
Profit After Tax |
|||
|
FY25 |
£131.2m |
£92.7m |
£21.9m |
|
FY24 |
£102.5m |
£73.0m |
£20.7m |
|
Change |
+£28.7m (+28.0%) |
+£19.7m (+27.0%) |
+£1.2m (+5.8%) |
All three
companies paid substantial dividends to their parent company Market Data
Limited during the year. IG Markets distributed £121.4 million, IG Index paid
out £114.6 million, and IG Trading and Investments returned £29.1 million.
Results Align with the
Group’s Overall Performance
The
performance across IG’s three main UK subsidiaries aligns with the group-level
results during fiscal 2025. IG Group’s consolidated results showed total
revenue of £1.075 billion and net trading revenue of £942.8 million,
representing 9% and 12% growth, respectively.
The
subsidiary-level results supported the group’s performance relative to market
expectations. Analysts had projected total revenue between £1.03-1.05 billion,
while IG reported figures at the higher end of these estimates.
Net profit
increased 24% to £380.4 million at the group level, which reflects the
operational changes implemented at the subsidiary level, including cost
management initiatives and restructuring efforts.
Active
customers increased 137% to 820,000, reflecting the implementation of growth
strategies observed at the subsidiary level, including IG Trading and
Investments’ expansion into stock trading and investment products.
“I am pleased that we are getting closer to our customers and increasing product velocity, which is translating into stronger customer acquisition,” said Breon Corcoran, CEO of IG Group.
New Offering And
Regulatory Scrutiny
The results
come after IG Group implemented cost-cutting measures in 2023, including
reducing its workforce by about 300 employees globally – roughly 10% of staff.
The company had targeted annual cost savings of £50 million through these
restructuring efforts.
IG Markets
noted in its filing that
it began offering cryptocurrency derivatives in May 2025 through a partnership
with an external provider, expanding its product range as digital assets
gain mainstream acceptance.
Despite the
improved performance, the companies face ongoing regulatory scrutiny. IG
Markets disclosed it’s involved in a class action lawsuit in Australia related
to OTC derivative sales to retail clients between May 2017 and August 2023,
though the case remains at an early stage.
Three key
subsidiaries of British financial services group IG have posted improved profit
figures for fiscal year 2025 (FY25), marking a recovery from the mixed results
reported a year earlier. The results also align with a nearly 25% jump in net
profit for the entire publicly listed group (LSE: IGG), which reached £380
million.
IG Subsidiaries Post
Profit Gains In FY25
IG Markets
Limited, the group’s main over-the-counter derivatives business, saw profit
jump to £131.2 million from £102.5 million the previous year. The company’s net
trading revenue climbed to £384.9 million, up from £343.0 million in fiscal
2024.
IG Index
Limited, which offers financial spread betting to UK customers, generated
profits of £92.7 million in fiscal 2025, compared to £73.0 million the year
before. Net trading revenue reached £228.3 million, up from £211.7 million.
The
performance also represents a turnaround from 2023, when both IG Markets and IG
Index had
reported declining profits due to what management called “inflationary
pressures, higher interest rates, increased market volatility , and a decline in
global equity prices.”
The third
entity, IG Trading and Investments Limited, which handles stock trading and
investment products after being spun off from IG Markets in 2022, continued its
growth trajectory too. Profit after tax hit £21.9 million versus £20.7 million
in the prior year, while revenue increased to £27.2 million from £20.4 million.
IG Group
UK Subsidiaries – Financial Performance Comparison
|
Metric |
IG Markets Limited |
IG Index Limited |
IG |
|
Net Trading Revenue |
|||
|
FY25 |
£384.9m |
£228.3m |
£27.2m |
|
FY24 |
£343.0m |
£211.7m |
£20.4m |
|
Change |
+£41.9m (+12.2%) |
+£16.6m (+7.8%) |
+£6.8m (+33.3%) |
|
Operating Profit |
|||
|
FY25 |
£140.5m |
£127.2m |
£23.8m |
|
FY24 |
£106.1m |
£102.3m |
£20.5m |
|
Change |
+£34.4m (+32.4%) |
+£24.9m (+24.3%) |
+£3.3m (+16.1%) |
|
Profit After Tax |
|||
|
FY25 |
£131.2m |
£92.7m |
£21.9m |
|
FY24 |
£102.5m |
£73.0m |
£20.7m |
|
Change |
+£28.7m (+28.0%) |
+£19.7m (+27.0%) |
+£1.2m (+5.8%) |
All three
companies paid substantial dividends to their parent company Market Data
Limited during the year. IG Markets distributed £121.4 million, IG Index paid
out £114.6 million, and IG Trading and Investments returned £29.1 million.
Results Align with the
Group’s Overall Performance
The
performance across IG’s three main UK subsidiaries aligns with the group-level
results during fiscal 2025. IG Group’s consolidated results showed total
revenue of £1.075 billion and net trading revenue of £942.8 million,
representing 9% and 12% growth, respectively.
The
subsidiary-level results supported the group’s performance relative to market
expectations. Analysts had projected total revenue between £1.03-1.05 billion,
while IG reported figures at the higher end of these estimates.
Net profit
increased 24% to £380.4 million at the group level, which reflects the
operational changes implemented at the subsidiary level, including cost
management initiatives and restructuring efforts.
Active
customers increased 137% to 820,000, reflecting the implementation of growth
strategies observed at the subsidiary level, including IG Trading and
Investments’ expansion into stock trading and investment products.
“I am pleased that we are getting closer to our customers and increasing product velocity, which is translating into stronger customer acquisition,” said Breon Corcoran, CEO of IG Group.
New Offering And
Regulatory Scrutiny
The results
come after IG Group implemented cost-cutting measures in 2023, including
reducing its workforce by about 300 employees globally – roughly 10% of staff.
The company had targeted annual cost savings of £50 million through these
restructuring efforts.
IG Markets
noted in its filing that
it began offering cryptocurrency derivatives in May 2025 through a partnership
with an external provider, expanding its product range as digital assets
gain mainstream acceptance.
Despite the
improved performance, the companies face ongoing regulatory scrutiny. IG
Markets disclosed it’s involved in a class action lawsuit in Australia related
to OTC derivative sales to retail clients between May 2017 and August 2023,
though the case remains at an early stage.
This post is originally published on FINANCEMAGNATES.
