Binary options and forex business IG Group has reported a 31.4% year-on-year revenue increase in its results for the full year ended 31 May, as the company seeks a new chief operating officer after Bridget Messer stepped down from the role.
Revenue amounted to £853.4m, a significant rise from £649.2m reported in the company’s 2020 results.
A combination of betting duty, net interest on client money and other operating income brought the total net operating revenue to £860.5m, up 31.6% compared to the previous full year results.
Total operating costs came to £406.0m, up 13.2% year-on-year.
The vast majority, at 87.3%, of the operating costs were attributed to general and fixed operating expenses, with the remaining 12.7% spent on remuneration costs that vary based on IG’s performance.
Fixed remuneration made up the highest portion of costs, at £131.4m, up 12.8% year-on-year. Advertising and marketing costs expended £71.1m, an increase of 15.6% in the same period. Other costs amounted to £45.8m, down 13.4%. The remaining costs were made up of revenue-related costs, IT fees, regulatory fees, and depreciation and amortisation costs.
This left the total operating income total at £454.1m, more than double the operating income in 2020.
Net finance costs at £3.8m left profit before tax at £450.3m, up 52.1% year on year.
The number of active clients also increased from 239,600 in 2020 to 313,000, an increase of 31.0%.
Taxation – at £78.4m including UK corporation tax, non-UK corporation tax and a number of deferred income tax provisions – brought the overall profit after tax to £371.9m. This was an increase of 54.7% year-on-year.
In a statement, IG Group praised its results and pinpointed the group’s acquisition of Tastytrade in June as a key reason for the growth.
“IG delivered record revenue and profit, underpinned by a significant increase in the number of high-quality, active clients. IG exceeded expectations against its growth targets and today issues new, upgraded guidance. The completion of the Tastytrade acquisition after the year-end accelerates IG’s growth and diversification ambitions, particularly in the important US market.”
Meanwhile, Bridget Messer, who held both COO and executive director roles for IG Group, has announced her intentions to step down, citing family reasons.
Messer spent 16 years with IG Group. She will continue in her roles in the coming months and will remain as a director until 22 September, the day of IG Group’s AGM.
“Bridget has made an invaluable contribution to the Group throughout her tenure with the company,” said June Felix, chief executive officer of IG Group.
“Her knowledge on commercial and regulatory matters have been greatly appreciated, as well as the role she has played in building the values and culture that have helped drive IG’s success. We thank Bridget for her dedication and wish her well.”