IG revenues climb by 10% despite fall in clients as boom fades for trading

CLIENT numbers are down at IG, but the City trading house still had a record year that allows it to beef up returns to shareholders.

The grand-daddy of the spread betting industry saw revenues up 5% to £495 million in the half-year as investors shrugged off market tremors to keep punting on shares, currencies and indices. That revenue translated into profits of £240 million, down a bit, but at a still fairly extraordinary profit margin of 50%.

IG had already unveiled share buybacks of £150 million — today it increased that to £200 million.

The number of active traders fell by 8400 to 312,000, a sign the lockdowninspired trading boom is over. That period saw scores of new investors come to the stock market to invest money saved while cooped up indoors.

Chief executive June Felix said: “All of the us recognise that markets have been challenging. But out clients have been trading through the market cycles.”

IG shares moved up 10p to 790p, which leaves it valued at £3.3 billion.

IG says its high-value clients are sophisticated players of markets looking to hedge often quite complicated portfolios.