Three IG Group Subsidiaries Report Mixed Results for Fiscal Year 2023

<p>Three
British subsidiary companies of the financial conglomerate IG Group have
released their data for the fiscal year 2023 (FY23). For two of them, the
financial result was worse than the previous year, but one reported a
significant increase in profitability.</p><p>Three IG Group
Subsidiaries Reported FY23 Results</p><p>As of today
(Tuesday), reports submitted by three subsidiary companies, Market Data Limited
and its parent company <a href="https://www.financemagnates.com/tag/ig-group/" target="_blank" rel="follow">IG Group Holdings Plc</a>, are available in the British
Companies House register. The first of these companies is IG Markets Limited,
which provides over-the-counter (OTC) trading services. </p><p>However, in
August 2022, it sold its stock trading and investment business to IG Trading
and Investments Limited, another subsidiary, which is a new entity responsible
for non-OTC trading. The third company is IG Index Limited, which, in addition
to OTC derivatives, also offers the UK customers financial spread beats. </p><p>All of the
mentioned companies are licensed by the <a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/">Financial Conduct Authority (FCA</a>).
Their financial reports pertain to the fiscal year ending 31 May 2023. They
indicate that the net profit of both IG Markets and IG Index declined slightly,
while the results of the newly established IG Trading and Investments saw a
significant increase following a net loss reported the previous year.</p><p>What Do IG Company Reports
Reveal?</p><p>IG Markets
reported a trading revenue of £405.2 million, compared to £453.6 million the
previous year. Maintaining operational costs at a similar level as in fiscal
year 2022 (FY22) resulted in a decrease in net profit to £171.3 million from
£188.2 million. </p><p>For IG
Index, the net trading revenue in FY23 was £236.5 million, down from £262.5
million the previous year. After-tax net profit decreased by about £15 million
to £102.5 million. In both reports, the management attributed the decline to
inflationary pressures, higher interest rates, increased market <a href="https://www.financemagnates.com/terms/v/volatility/">volatility</a>, and
a decline in global equity prices.</p><p>"Inflationary
pressures have led to increased third-party operating costs, and the rise in
central banks' policy rates has resulted in an increase in interest income
earned on cash and cash equivalents. The Directors continue to monitor the
impact of these macroeconomic factors on the operations of the Company,"
the financial reports stated. </p><p>IG Trading
and Investments began operations after acquiring part of the business from IG
Markets in August 2022. Throughout FY23, the company achieved a net profit of
£9.17 million, compared to a loss of nearly £800,000 the previous year. Total
equity increased from £3.5 million to £20.7 million.</p><p>The entire
Group has not yet published its financial results for FY23. However, <a href="https://www.financemagnates.com/forex/ig-sees-10-revenue-jump-in-h1-fy23-extends-share-buyback-program/" target="_blank" rel="follow">from the
report for H1 of the previous fiscal year</a>, it is evident that the company
recorded a 10% increase in revenue and a pre-tax net profit of £240.5 million.</p><p>IG Group to Reduce Staff</p><p>The reports
emerge as <a href="https://www.financemagnates.com/forex/breaking-ig-group-to-reduce-10-staff-globally/" target="_blank" rel="follow">IG Group is set to reduce its workforce by approximately 300</a>,
equating to 10% of its entire staff by the end of 2023. This decision follows a
comprehensive analysis of the firm's potential cost-saving avenues.</p><p>Revealed
today, the trading firm aims to achieve steady cost reductions amounting to £50
million annually. They forecast structural savings of £10 million in fiscal
year 2024 (FY24), escalating to £40 million in 2025 and reaching £50 million
by 2026.</p><p>Furthermore,
the trading entity emphasized expectations of an extra £10 million in savings in
FY24 due to decreased variable expenses. These cutbacks mirror the milder
market situations <a href="https://www.financemagnates.com/forex/brokers/igs-q1-otc-revenue-drops-8-despite-strong-interest-income/" target="_blank" rel="follow">reported in Q1</a>, which persisted into Q2, culminating in an
aggregate annual savings of £20 million.</p>

This article was written by Damian Chmiel at www.financemagnates.com.