IG Group
Holdings plc (LSE: IGG)
announced today (Wednesday) the commencement of the second tranche of its £150
million share buyback program. The company has instructed UBS AG London Branch
to execute this phase, which will involve repurchasing up to £75 million worth
of shares.

IG Taps UBS for £75M Share
Repurchase Program

The second
tranche, set to begin immediately, is expected to conclude by January 31, 2025.
This follows the successful completion of the first £75 million tranche, which
was initiated in August and managed by Morgan Stanley & Co.
International Plc.

The buyback
will be conducted within the parameters approved by shareholders at IG Group’s
annual general meeting held on September 18, 2024. Under this authority, the
company can repurchase up to 36,934,031 shares during the second tranche.

IG Group
has emphasized that the sole purpose of the buyback program is to reduce share
capital. All repurchased shares will be held in treasury, potentially affecting
the company’s outstanding share count and earnings per share calculations.

This latest
buyback initiative comes on the heels of IG Group’s fiscal year 2024 results,
which saw some headwinds. The
company reported a 11% decrease in pre-tax profit to £400.8 million and a
3% decline in total annual revenue to £987.3 million.

“I’ve identified
areas requiring change,” stated Breon Corcoranm the CEO of IG Group. “We have
lots of work to do to take IG to the next level and address the challenges we
face.”

However, as
it turns out, the previous quarter looked much better.

IG’s Fiscal Q1 2025
Revenue Sees 15% Increase

The
London-listed company concluded the first fiscal quarter of 2025, spanning June
to August, with a significant revenue increase. Total revenue reached £278.9
million, marking a 15% rise compared to the previous year. This growth was
primarily fueled by an increase in revenue per client and heightened volatility
in various asset classes observed in early August.

Additionally,
IFGreported a 14% increase in over-the-counter (OTC) derivatives revenue, which
amounted to £208.1 million. Revenue from exchange-traded derivatives also saw a
notable jump of 20%, reaching £59.6 million. The rest of the revenue, totaling
£11.2 million, was derived from stock trading and investments.

Meanwhile,
Daily FX, previously a trading news and forex analysis platform operated by IG
Group, has been discontinued, with its website now redirecting to the group’s
main site. The company also launched “Trade Live with IG” morning show.