IG Group Holdings, a prominent online-trading company, has announced a decline in pretax profit for the first half of the fiscal year due to challenging market conditions. However, despite this setback, the company remains confident in achieving its margin target for fiscal 2024.
During the six months ending on November 30, the company’s pretax profit stood at £176.4 million ($224.5 million), a decrease from £240.5 million recorded during the same period last year. Adjusting for exceptional and one-off items, the adjusted pretax profit decreased by 21% to £205.7 million, resulting in a margin drop from 50.2% to 43.5%.
The decline in revenue also contributed to the overall decrease in profit. Revenue dropped from £519.1 million to £472.6 million, primarily due to soft market conditions and strong comparatives.
Despite these challenges, IG Group Holdings remains optimistic about the future. For fiscal 2024, the company expects to achieve an adjusted profit margin percentage in the mid-to-high 40s, which aligns with its medium-term guidance.
Despite ongoing market difficulties extending into the beginning of the third quarter, IG Group Holdings continues to perform well. The company attributes its resilience to an increasingly diversified revenue mix.