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IG Group shares tumble as profit declines

IG Group Holdings (LSE: IGG) shares plunged over 8% on Thursday after the online trading platform reported a decline in first-half revenue and earnings amid volatile market conditions. The company said revenue in the six …

IG Group Holdings (LSE: IGG) shares plunged over 8% on Thursday after the online trading platform reported a decline in first-half revenue and earnings amid volatile market conditions.

The company said revenue in the six months to November 30 fell 9.0% to £472.6 million from £519.1 million a year earlier. Pre-tax profit dropped 27% to £176.4 million from £240.5 million in the same period last year.

Specifically, net trading revenue slumped 19% year-on-year to £402.4 million as IG faced low volatility in markets during the first half. The number of active clients also fell 5% to 296,300 from 312,000.

IG marginally raised its interim dividend payout to 13.56 pence per share, up from 13.26 pence. But it warned that unfavourable trading trends have persisted into the third quarter.

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The firm still expects its full-year adjusted pre-tax profit margin to be in the “mid-to-high 40s”, although that would be down from 48.0% last year and 50.2% the year before that.

IG is aiming to cut costs and jobs to weather the tough markets, having announced plans in October to slash 300 positions as part of £50 million in targeted savings.

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