IG Group FY25 Results Reveal Strong Customer Growth

IG Group FY25 results reveal strong revenue and customer growth, driven by efficiency, marketing, and Freetrade acquisition. IThe company has released its FY25 results, delivering a robust performance that beat market forecasts. Both revenue and profit surpassed expectations, prompting a strong rise in its London-listed stock.

While top-line figures were previously announced, the detailed annual report offers several noteworthy updates.

IG Group FY25 Results Mark Shift Toward Growth and Efficiency

In 2024, IG exited “several legacy and sandbox initiatives” such as Spectrum, Brightpool, Raydius, BadTrader, and Small Exchange. These decisions followed assessments that revealed limited contribution and weak growth outlooks.

The divestments resulted in a £3.2 million write-down of intangible assets tied to Spectrum and another £4.1 million for Small Exchange assets.

FinanceMagnates.com earlier reported the broker’s South Africa exit. IG has now officially confirmed the closure of its commercial business in the country to “prioritise investment in larger and fast-growing markets.”

Efficiency Drives 7% Cost Decline

According to IG, the fixed cost to serve each customer dropped by 7 per cent over the fiscal year, reflecting successful efficiency-focused initiatives.

To boost income retention in its OTC business, the broker rolled out steps to capture more spread income and lower hedging expenses.

“We expect these initiatives to deliver stronger customer income retention over the medium to long term and increase short-term variability,” said IG’s CEO, Breon Corcoran.

Customer income retention improved by four percentage points, reaching over 79 per cent. This uplift contributed an estimated £40 million—around 5 per cent—to OTC net trading revenue.

Marketing Investment Rises 12%

Advertising and marketing continue to be a major cost component for retail brokers, and IG followed suit.

The firm reported £93.5 million in marketing spend for the year—a 12 per cent increase from the prior year.

IG noted that this reflects “a targeted increase in marketing to capture demand across divisions.” Supporting the strategy, it also recorded a 19 per cent organic rise in first trades by new clients.

New £125 Million Buyback Ahead

IG has confirmed plans for a fresh £125 million share buyback during H1 of the current fiscal year. The board has approved the plan, which remains subject to capital priorities and stock performance.

Following the results release and upbeat guidance, IG shares surged over 7 per cent on Thursday.

The firm had initiated a £150 million buyback in FY25, which was later expanded by £50 million and completed before year-end. Since FY22, IG has returned £1.2 billion to shareholders via dividends and buybacks, reducing its outstanding shares by more than 19 per cent.

Freetrade Acquisition Lifts Numbers

IG reported annual revenue exceeding £1.07 billion. Of that, £4.8 million came from Freetrade, acquired just two months before year-end.

Freetrade’s FY25 full-year revenue jumped 22 per cent to £29.1 million. IG also onboarded 457,300 active users from the Freetrade platform, growing its total customer base by 137 per cent to 820,000. Excluding the acquisition, organic growth in IG’s customer count stood at 5 per cent, or 362,000 clients.

“With most of Freetrade’s customers in their 20s and 30s, the acquisition broadens our addressable market and gives us more scope for new products and market entry,” Corcoran said.

“As we look ahead, our main focus is on completing Freetrade’s product roadmap and scaling the business in the UK.”

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