IG Group first half profit drops on rising operating costs

Spreadbetting firm IG Group posted a drop in first half profit despite a jump in revenue, as operating costs rose.

For the six months ended 30 November, net trading revenue was up 8.8% at £214.8m and new client numbers were 35% ahead of the previous year.

However, pre-tax profit fell 2.8% compared with the prior year to £98.6m. The company attributed the drop to an increase in operating costs, primarily due to its ongoing investment in growth initiatives, as well as higher betting duty and lower interest on client funds.

The group declared an interim dividend of 8.45p per share, in line with its policy, and said the second half of the year has started well.

New chief executive Peter Hetherington said: "The business continues to perform well and I am pleased with the progress on the strategic initiatives we are investing in to underpin the future growth of the company.

“Building on our strong operational and risk management capabilities, we are driving continuous improvement and value from the current business. At the same time, we are laying foundations for broadening the IG offering, to take advantage of supportive macro trends in financial behaviour, by leveraging the market-leading platform we have built."