IG Group Share Buyback Initiative Launched

IG Group Share Buyback Initiative Launched to repurchase £75 million in shares, aiming to bolster shareholder value and optimize capital structure. IG Group Holdings plc (LSE: IGG) announced today (Wednesday) the initiation of the second phase of its £150 million share buyback program. UBS AG London Branch will manage this tranche, involving the repurchase of shares worth up to £75 million.

IG Group Share Buyback: UBS Takes Charge

This second phase will begin immediately and conclude by January 31, 2025. It follows the successful completion of the first £75 million tranche, which started in August and Morgan Stanley & Co. International Plc oversaw. The company will execute the buyback in line with the shareholder-approved parameters from IG Group’s annual general meeting on September 18, 2024. Shareholders have authorized the company to repurchase up to 36,934,031 shares during this tranche.

IG Group clarified that the primary objective of the buyback program is to reduce share capital. The company will hold all repurchased shares in treasury, which may impact its outstanding share count and earnings per share metrics. This new buyback comes after IG Group’s fiscal year 2024 results, which revealed some challenges. The company reported an 11% drop in pre-tax profit to £400.8 million, along with a 3% decline in total annual revenue, which stood at £987.3 million.

“I’ve identified areas requiring change,” said Breon Corcoran, 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, the outlook improved in the following quarter.

IG Reports Fiscal Growth

The London-listed company wrapped up the first fiscal quarter of 2025 (June to August) with notable revenue growth. Total revenue surged to £278.9 million, reflecting a 15% year-on-year increase. Higher revenue per client and increased volatility across various asset classes in early August primarily drove this growth.

Additionally, IG reported a 14% rise in over-the-counter (OTC) derivatives revenue, which totaled £208.1 million. Revenue from exchange-traded derivatives saw an impressive 20% increase, reaching £59.6 million. The remaining revenue, amounting to £11.2 million, came from stock trading and investments. In the meantime, IG Group has discontinued Daily FX, its former trading news and forex analysis platform, and redirected its website to the group’s main site. The company has also introduced the “Trade Live with IG” morning show.

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