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IG Group Holdings PLC on Thursday reported a slight fall in interim profit, despite revenue rising by 10%, and lifted its dividend.
The London-based contracts-for-difference trading platform said in the six months ended November 30, revenue rose 10% to £519.1 million from £471.5 million a year earlier, reflecting ‘increasing interest rates during the period’. Net trading revenue rose by 4.9% to £494.9 million from £471.9 million.
However, pretax profit fell by 1.9% to £240.5 million from £245.2 million year-on-year, as operating profit dropped by 4.7% to £239.2 million from £251.0 million.
Total operating costs increased 25% to £279.9 million from £223.3 million a year earlier.
Chief Executive June Felix said: ‘Despite a softening in trading demand due to the global economic environment, our high-quality clients have continued to find opportunities to trade, demonstrating the resilience of the business model.’
The company declared a 2.3% increase in its interim dividend of 13.26 pence, up from 12.96p a year prior.
IG said that it is extending its share buyback programme by £50 million to a total of £200 million.
Looking ahead, IG said it expects financial year 2023 to be in line with expectations and reiterated its medium-term guidance, targeting 5% to 7% annual growth in its Core Markets+ division and 25% to 30% growth in High Potential Markets.
Revenue in Core Markets+ was £424.3 million in the first half, up 6.0% from £400.3 million a year before. It was up by 28% to £94.8 million from £74.1 million in High Potential Markets.
IG shares were up 1.5% at 792.00 pence each on Thursday morning in London.
By Xindi Wei, Alliance News reporter
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