Ig Group Holdings Plc · LSE:IGG

Ig — FY2025 Earnings Presentation

40 slides from Ig's earnings presentation, July 2025

  1. Slide 1: FY25 Full Year Results: Moving faster

    FY25 FULL YEAR RESULTS Moving faster

  2. Slide 2: Agenda

    Agenda 01. Highlights 02. Financial performance 03. Strategic update 04. Q&A FY25 results presentation 2

  3. Slide 3: Highlights

    Highlights Breon Corcoran, CEO FY25 results presentation 3

  4. Slide 4: A reminder of our strategic priorities

    Highlights A reminder of our strategic priorities Product Culture Efficiency  Get closer to our customers  Increase ownership  Reduce cost to serve and accountability  Deliver products and  Drive scalability experiences that meet  Move faster to close  Improve returns on capital their needs i

  5. Slide 5: Our delivery in FY25

    Highlights Our delivery in FY25 Product Culture Efficiency  Closing gaps in high priority  Decentralised organisational  Organic fixed cost to serve2 product and UX, including structure beginning to per customer –7% y/y crypto and stock trading & enhance performance  OTC customer income investme

  6. Slide 6: Financial performance

    Financial performance Clifford Abrahams, CFO FY25 results presentation 6

  7. Slide 7: Good initial strategic progress delivering growth

    Financial performance Good initial strategic progress delivering growth Active customers (‘000s) Total revenue £1,075.9m 9% 137% Adjusted profit before tax 5% £535.8m 17% 346.2 362.8 820.0 Adjusted basic EPS 114.1p 26% First trades (‘000s) 19% 26% Capital returned in FY25 £397m 69.9 83.0 88.4 Total

  8. Slide 8: P&L – strong full year revenue and earnings

    Financial performance P&L – strong full year revenue and earnings Adjusted P&L (£m) FY25 FY24 Reported Organic  Net trading revenue reflected Net trading revenue 942.8 844.9 12% 11% supportive market conditions and Net interest income 133.1 142.4 (6%) (7%) good initial strategic progress Total reve

  9. Slide 9: Key performance indicators by product

    Financial performance Key performance indicators by product Reported Organic OTC Exchange traded Stock trading Group derivatives derivatives & investments Net trading 39% 12% revenue £751.8m 10% £159.4m 13% £31.6m £942.8m 23%1 11%2 Active customers 526% 137% (‘000s) 185.0 3% 103.5 12% 544.0 820.0 0%

  10. Slide 10: Key performance indicators by division

    Financial performance Key performance indicators by division Reported UK & Ireland APAC & ME United States Europe Institutional & EM Organic Net trading £297.2m £259.0m £166.1m £133.5m £87.0m revenue 13% 11%1 4% 16% 17% 17% Active customers 561.5 93.9 108.4 39.5 17.0 (‘000s) 448% 2%1 2% 12% 1% 18% F

  11. Slide 11: Costs well controlled

    Financial performance Costs well controlled Adjusted operating costs (£m)1 FY25 FY24 Change  Fixed remuneration down driven by lower headcount reflecting Fixed remuneration 187.8 199.1 (6%) portfolio rationalisation, digital Advertising and marketing 93.5 83.1 12% servicing and impact of FY24 Reven

  12. Slide 12: Refining our capital allocation framework

    Financial performance Refining our capital allocation framework  Introducing a management 1. Regulatory capital requirements 2. Regular distributions buffer on minimum regulatory capital requirements to provide Maintain capital resources in a Maintain a progressive ordinary clarity on distributable

  13. Slide 13: Ongoing assessment of M&A to accelerate growth

    Financial performance Ongoing assessment of M&A to accelerate growth Strategic fit Return profile Deliverability  Close priority product, user  ROIC > WACC in years three  Regulatory and compliance experience and capability to five  Integration approach gaps  Cash EPS accretive by year  Manage

  14. Slide 14: Substantial headroom on target capital range

    Financial performance Substantial headroom on target capital range Excess on target range  Regulatory capital resources at the at end FY25 of £131m end of FY25 totalled £847m, including a deduction for the FY25 proposed final dividend (£116m) 200% of requirement: Pro forma regulatory capital £591m

  15. Slide 15: Strong liquidity position to support future growth

    Financial performance Strong liquidity position to support future growth  Change in cash position reflects Liquidity (£m) May-25 May-24 Change profit for the year, £250m senior bond issued in May 2025, offset by IG’s own cash and liquid assets (“own funds”) 1,009.2 1,123.9 (10%) dividend payments,

  16. Slide 16: FY26 outlook

    Financial performance FY26 outlook Financial reporting FY26 guidance  From FY26, IG will report unadjusted  Current trading in line with the Group’s P&L measures, alongside cash EPS expectations stated before amortisation of acquisition-related intangible assets  Expect to meet current market exp

  17. Slide 17: Strategic update

    Strategic update Breon Corcoran, CEO FY25 results presentation 17

  18. Slide 18: Large and growing addressable markets

    Strategic update Large and growing addressable markets Target addressable market by revenue (TAM) IG penetration OTC Futures Stock trading & Crypto Current TAM Prediction derivatives & options investments - existing markets / other products only product >£8bn High adjacencies >£18bn >£130bn ARPU <9%

  19. Slide 19: Product assessment and FY26 priorities

    Strategic update Product assessment and FY26 priorities OTC Futures & Stock trading Crypto Prediction markets derivatives options & investments and adjacencies Current Market leader with Relevant footprint Challenger Challenger Huge and fast- assessment self-help levers to in the US with an growing

  20. Slide 20: Our delivery in FY25 – product

    Product Culture Efficiency Strategic update Our delivery in FY25 – product Strengthening the core  Closing high priority product and UX gaps  Ongoing focus on simplifying and scaling offerings  Extensive product and UX roadmap in FY26  Partnering to accelerate product velocity Freetrade deliveri

  21. Slide 21: Our delivery in FY25 - culture

    Product Culture Efficiency Strategic update Our delivery in FY25 - culture Enhancing organisational Strengthening our high- Enhancing performance Ongoing focus on effectiveness performance approach management and reward engagement  Decentralised  Reshaped the  Cascaded new target  Implemented be

  22. Slide 22: Strategic hiring gathering pace

    Product Culture Efficiency Strategic update Strategic hiring gathering pace New joiners to Executive Committee since Selected leaders hired in FY25 December 2024 >25% of reports to ExCo at end FY25 hired in the year Freetrade management team Head of Digital Servicing Clifford Abrahams, CFO Led by Vi

  23. Slide 23: Our delivery in FY25 – efficiency

    Product Culture Efficiency Strategic update Our delivery in FY25 – efficiency  Initiated digital servicing workstreams Organic fixed cost to serve Group average KYC time per coming down (£ per customer)1 new customer (days)2 with good initial results 34%  Fixed cost to serve per customer coming do

  24. Slide 24: Improving revenue retention in our OTC business

    Product Culture Efficiency Strategic update Improving revenue retention in our OTC business  Increasing retention of customer income 79% 76% 76% 75% Initial OTC customer Customer income 72%  Flexing OTC spreads to reflect 69% income retention changes in underlying market enhancement initiatives in

  25. Slide 25: Guidance and outlook

    Strategic update Guidance and outlook FY26 guidance Beyond FY26  Current trading is in line with the  Beyond FY26, total revenue expected to Group’s expectations compound in a mid-to-high single-digit percentage range per annum on an  Expect to meet FY26 current market organic basis, accelerating

  26. Slide 26: Summary – good initial progress implementing our strategy

    Strategic update Summary – good initial progress implementing our strategy Embedding a Closing key product gaps Enhancing efficiency high-performance culture On track to meet current Laying the foundations for Returning capital while market expectations for a step change in growth investing in growt

  27. Slide 27: Q&A

    Q&A FY25 results presentation 27

  28. Slide 28: Appendix

    Appendix FY25 results presentation 28

  29. Slide 29: Reconciliation of alternative performance measures

    Appendix 1 Reconciliation of alternative performance measures Adjusted operating costs (£m) FY25 FY24 Adjusted profit before taxation and EPS £m (unless stated) FY25 FY24 Operating costs 607.8 604.1 Earnings per share 106.3 79.4 Net credit losses on financial assets 3.0 15.5 Weighted average number

  30. Slide 30: tastytrade performance summary

    Appendix 2 tastytrade performance summary tastytrade revenue ($m) tastytrade client funding ($bn) Interest income Client equity 1 Trading revenue Client cash balance2 85 92 60 4.0 3.2 1.9 1.3 1.3 193 160 161 138 145 0.5 82 1.9 2.0 1.9 1.9 2.0 1.1 FY20 FY21 FY22 FY23 FY24 FY25 FY20 FY21 FY22 FY23 FY2

  31. Slide 31: Cash balances

    Appendix 3 Cash balances Client money held off balance sheet (£ million, period end) FY251 H1 FY25 % change FY24 % change Client money United States 1,472 1,624 (9%) 1,512 (3%) held off balance Rest of World 2,492 2,214 13% 2,283 9% sheet drives interest income Total 3,965 3,838 3% 3,795 4% -- o/w o

  32. Slide 32: Regulatory capital headroom bridge

    Appendix 4 Regulatory capital headroom bridge 49 116 380 200 3 145 125 41 638 427 End FY24 FY25 FY25 FY25 final Buybacks Change in Freetrade Deduction for Other balance Pro forma headroom on statutory profit interim dividend dividend announced regulatory goodwill £125m buyback sheet end FY25 minimum

  33. Slide 33: Net trading revenue and drivers by division

    Appendix 5 Net trading revenue and drivers by division Net trading revenue (£m) FY25 FY24 FY23 FY22 First trades (000) FY25 FY24 FY23 FY22 UK & Ireland 297.2 263.6 305.4 341.9 UK & Ireland 21.0 11.7 14.2 22.5 -- of which Freetrade 3.7 - - - -- of which Freetrade 5.4 - - - APAC & ME 259.0 249.5 281.7

  34. Slide 34: Net trading revenue by division and product

    Appendix 6 Net trading revenue by division and product Net trading revenue (£m) FY25 FY24 FY23 FY22 Net trading revenue (£m) FY25 FY24 FY23 FY22 UK and Ireland: APAC & ME: OTC derivatives 270.5 244.5 286.7 315.9 OTC derivatives 254.5 246.3 278.0 270.0 Exchange traded derivatives 0.7 0.0 0.0 0.0 Stoc

  35. Slide 35: Active customers by division and product

    Appendix 7 Active customers by division and product Active customers (000) FY25 FY24 FY23 FY22 Active customers (000) FY25 FY24 FY23 FY22 UK and Ireland: APAC & ME: OTC derivatives 52.1 51.6 56.4 60.5 OTC derivatives 67.9 66.2 70.0 71.5 Exchange traded derivatives 2.1 0.0 0.0 0.0 Stock trading & inv

  36. Slide 36: First trades by division and product

    Appendix 8 First trades by division and product First trades (000) FY25 FY24 FY23 FY22 First trades (000) FY25 FY24 FY23 FY22 UK & Ireland: APAC & ME: OTC derivatives 9.5 7.9 9.4 11.5 OTC derivatives 18.4 17.7 19.4 27.4 Exchange traded derivatives 2.1 0.0 0.0 0.0 Stock trading & investments 2.8 3.0

  37. Slide 37: Active customers by division and product - quarterly

    Appendix 9 Active customers by division and product - quarterly Active customers (000) Q4 FY25 Q3 FY25 Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 UK & Ireland: OTC derivatives 39.5 36.8 36.1 36.0 37.3 37.5 37.9 38.6 40.1 40.0 42.6 41.9 Exchange traded derivatives

  38. Slide 38: Active customers by division and product – quarterly

    Appendix 10 Active customers by division and product – quarterly Active customers (000) Q4 FY25 Q3 FY25 Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Europe: OTC derivatives 28.4 26.6 23.4 24.8 25.4 25.4 25.7 25.3 25.9 25.5 25.6 25.8 Exchange traded derivatives 0.0

  39. Slide 39: Update on litigation and tax developments

    Appendix 11 Update on litigation and tax developments Litigation Taxation  Defending a class action matter filed in 2023 against  In the UK, HM Treasury completed a consultation two IG operating entities in Australia relating to on the proposed reform of remote gambling tax alleged historical cond

  40. Slide 40: Disclaimer

    Disclaimer This presentation, prepared by IG Group Holdings plc (the "Company"), may contain forward-looking statements about the Company and its subsidiaries (the "Group"). Such forward-looking statements can be identified by the use of forward- looking terminology, including the terms "believes",

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