London-listed IG Group (LON: IGG) published its financials for fiscal 2023, ending on 31 May, reporting an annual revenue increase of 5 percent to over £1.02 billion. The adjusted revenue for the year went up by 6 percent.

Diversified Strategy of IG

However, the net trading revenue of the brokerage giant went down by 3 percent to £941.8 million from £972.3 million. The overall revenue was pushed by an interest income of £80.8 million, up from the previous year’s £0.8 million, mostly because of the higher interest rates.

“We’ve delivered a fourth consecutive year of record revenue as part of our strategy to expand and diversify the Group through great technology and innovative products, combined with outstanding client experiences,” said Charlie Rozes, IG’s Acting CEO, who took over the apex role in the absence of June Felix.

Its revenue from the US operations also went up significantly, with a total of £191.3 million, an increase of 47 percent. Tastytrade generated £170.3 million, 52 percent higher than the previous year. In Europe, the revenue of Spectrum Markets increased by 52 percent to o £15.7 million.

The non-OTC revenue of the group now contributes to 21 percent of its total revenue, up from 16 percent in the previous year.

“We’ve performed well in the much more difficult market conditions that persisted through most of the past year, maintaining our leadership position in OTC derivatives while building further momentum in our product and geographic expansion,” added Rozes.

Profits

The brokerage ended the fiscal with a pre-tax profit of £449.9 million, down from the previous year’s £477 million. The adjusted pre-tax profits went down by 1 percent to £490.5 million. Its adjusted profit before tax margin at 48 percent followed the guidance but came down from 51.1 percent in FY22.

The net profit came down to £363.6 million from £396.1 million, a decline of 8 percent. The basic earnings per share at the year-end came down to 86.9 pence from 92.9 pence, while the adjusted figure shrank to 94.7 pence from 96.3 pence. Despite the profit decline, the broker proposes a dividend distribution of 45.2 pence, up from 44.2 pence.

New Dividend Plan

IG spent £186.2 million in fiscal 2022 in repurchasing its shares. It has now expanded the buyback program, allocating £250 million. The broker initially launched its £150 million share buyback program last year and expanded it earlier this year.

“Looking ahead, we’re well positioned to continue investing for growth given the strength and consistency of our cash flow and balance sheet. We keep a close watch on profit margins and in FY24 will continue to look for opportunities to achieve even greater cost efficiency. We’re the home of active traders worldwide, and we are building a more sustainable, long-term business that delivers for all stakeholders,” Rozes said.