Volatility boosts IG Group after Freetrade deal completes
IG Group has upgraded its profit guidance for the financial year after increased trading from high market volatility around global trade uncertainty boosted its revenue.
“Elevated volatility across a range of asset classes, particularly in April, has resulted in higher levels of client trading activity than expected in typical market conditions,” the firm said in a trading update.
Now, IG Group said it expected total revenue for the financial year, which ends for the firm on 31 May, to reach £1.05bn, compared to previous expectations of £1.03bn.
Adjusted profit before tax for the FTSE 250 firm is expected to total £516.3m, compared to previous expectations of £500.5m.
Freetrade boosts IG’s bottom line
The news comes after IG Group completed its acquisition of stock trading app Freetrade, along with its 720,000 customers and £2.5bn in assets, for £160m at the start of last month.
IG Group said Freetrade had “continued to trade well” since the acquisition, with performance tracking in line with expectations.
The firm added that it had bought back £39.1m of its £200m share buyback programme, after expanding its previous £50m buyback plan in January.
RBC analysts forecast that 6.2 per cent of IG Group’s market cap will be returned throughout the 12 months following the expansion of the buyback programme, with scope for a further five per cent in further buybacks.
The group’s stock price is up more than nine per cent since the start of 2025, as investors have predicted that the increased volatility in financial markets would benefit its bottom line.
IG Group also said that it had further boosted its cash reserves by refinancing a £400m loan, due to mature next October, into a £600m loan which will expire in May 2030.
“The new facility aligns with the increased size of the business and will support future growth objectives,” said the firm, added that it will supplement its debt with the issuance of a senior unsecured bond.
The group is set to release its full-year results on 24 July.