Abstract:IG Group reports strong Q4 results, forecasting £1.051 billion in revenue for FY25. Key moves include Freetrade acquisition and expanded credit facility for growth.
IG Group, a top player in spread betting and CFDs shared an upbeat trading update for Q4 of fiscal year 2025, fueled by lively client activity and choppy market conditions. The company now expects to rake in £1.051 billion in revenue for the year, with adjusted profit before tax hitting £516.3 million—numbers that either meet or nudge past what analysts predicted.
April‘s market turbulence sparked a frenzy of client trades across stocks, currencies, and more, giving IG a solid finish to the quarter. This wave of activity not only lifted results but also cemented IG’s knack for thriving in volatile times.
A big win for IG was wrapping up its acquisition of Freetrade, a UK-based platform shaking up commission-free investing, on April 1. Snagged for $195 million using IG‘s own funds, the deal came at a 29% discount from Freetrade’s earlier valuation. Freetrade will keep its own identity, running independently while boosting IGs appeal to everyday investors hungry for low-cost trading options.
This move sharpens IG‘s edge in the retail investing world, putting it head-to-head with players like Robinhood. It’s a clear sign IG is doubling down on diversifying its offerings to capture a broader crowd of traders.
To keep its focus tight, IG pulled the plug on underperforming projects, like the Spectrum multilateral trading facility, which was barely breaking even. Shutting it down lets IG pour energy into its core strengths, streamlining operations for better efficiency.
IGs also been generous with shareholders, pumping an extra £50 million into its share buyback program, bringing the total to £200 million. By May 9, it had scooped up 4.1 million shares for £39.1 million, balancing investor rewards with a sturdy financial foundation.
On the financing front, IG swapped its £400 million credit line for a beefier £600 million facility, set to mature in May 2030. This gives IG more room to chase new ventures or investments. Plus, the companys eyeing a senior unsecured bond issuance, pending market conditions and regulatory green lights, to mix up its funding and fuel long-term plans.
IG‘s blend of smart acquisitions, cost-cutting moves, and financial flexibility shows it’s playing the long game. By leaning into client momentum and strategic shifts, IG is carving out a strong spot in the fast-paced trading world.
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