IG : Interim results

IG Group Holdings plc

LEI No: 2138003A5Q1M7ANOUD76

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

IG GROUP HOLDINGS PLC

Interim results for the six months ended 30 November 2020

21 January 2021

IG Group Holdings plc ("IG", "the Group", "the Company"), a global leader in online trading, today announces its results for the six months ended 30 November 2020 ("H1 FY21").

'Delivered record revenue and profit while continuing to build a diversified, global business, driven by a step

change in the size of the client base and aided by continued favourable trading conditions'

Highlights

• A record performance in H1 FY21:
• • Net trading revenue up 67% to £416.9 million (H1 FY20: £249.9 million)
  • Profit before tax increased 129% to £231.3 million (H1 FY20: £101.2 million)
  • Active clients rose 55% to 238,600 (H1 FY20: 154,000), 64,000 new clients onboarded (H1 FY20: 28,800)
  • New client retention rates are comparable to historical averages
  • Capital, funding, and liquidity remain very strong with regulatory capital resources of £712.3 million (31 May 2020: £675.5 million)
  • Interim cash dividend of 12.96 pence per share (H1 FY20: 12.96 pence per share)
• Excellent progress in executing the growth strategy:
• • Revenue of £340.6 million in Core Markets (H1 FY20: £209.9 million), up 62%
  • Revenue of £76.3 million in Significant Opportunities (H1 FY20: £40.0 million), up £36.3 million
• Successfully served a substantially larger client base and handled sharply elevated trading volumes, brought about by the dedication of our people and resilience of our platform, made possible by the continued investment in both
• Announced the landmark acquisition of tastytrade, a transaction that expands and diversifies IG's growth drivers into US options and futures, through entry into the largest listed derivatives market in the world
• Continued support of the Company's broader communities through Group-wide environmental, social and governance (ESG) activities:
• • Distributed £2 million of IG's Brighter Future fund to selected charities to improve the educational opportunities for disadvantaged children across the world through the Teach for All network
  • Distributed a further £1 million from the fund to selected charities in need of Covid-19 pandemic relief

Financial Summary

	H1 FY21	H1 FY20	Change %
Net trading revenue (£ million)	416.9	249.9	67%
Total operating costs (£ million)	188.2	154.1	22%
Profit before tax (£ million)	231.3	101.2	129%
Profit after taxation (£ million)	187.1	82.4	127%
Basic earnings per share (pence)	50.7	22.4	126%
Interim dividend per share (pence)	12.96	12.96	unchanged

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June Felix, Chief Executive, commented:

"I am delighted to announce an outstanding performance over the first six months of our financial year. We delivered record revenue and profit, made excellent progress against our strategic growth objectives and continued to build a more sustainable and diversified global business.

Demand for our products remained high, benefitting from favourable trading conditions, although it is the quality of our technology and the dedication of our people, throughout the global pandemic, that has enabled us to convert this demand into a step change in the size of our active client base.

We empower our clients as they seek opportunities to trade, providing them with a superior platform, innovative products and exceptional service to deliver an excellent trading experience. We are rewarded by their loyalty.

Today we also share details of our proposed acquisition of tastytrade. This is an incredibly exciting, landmark deal that is fully aligned to the growth strategy we set out in May 2019. It will see IG diversify into the high growth market of US exchange traded options and futures, a market with an estimated 1.5 million retail traders, and we are confident that this transaction will materially expand our US presence.

As we enter the second half of the year I believe that we are better positioned than ever before to deliver sustainable value."

Further information
IG Group Investor Relations	IG Group Press	FTI Consulting
Liz Scorer	Ramon Kaur	Edward Berry
020 7573 0727	020 7896 0011 / 07388 440 127	07703 330 199
Fergus Witt	[e-mail]
020 7573 0741

Analyst presentation

There will be an analyst and investor presentation at 9:30am (UK Time) on Thursday 21 January.

The presentation will also be accessible live via audio webcast at https://pres.iggroup.com/ig054/. If you wish to listen via conference call, please use the following link https://pres.iggroup.com/ig054/vip_connect. The audio webcast of the presentation and a transcript will be archived at: www.iggroup.com/investors.

Financial reporting calendar

IG regularly updates the market on financial performance and delivery against strategy. The Company believes that four updates a year is comprehensive and therefore will no longer be providing a Trading Update ahead of interim and full year results announcements. The next financial update will be the Third Quarter Revenue Update in March 2021.

Disclaimer - forward-looking statements

This interim statement, 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", "projects", "estimates", "plans", "anticipates", "targets", "aims", "continues", "expects", "intends", "hopes", "may", "will", "would", "could" or "should" or, in each case, their negative or other various or comparable terminology.

Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors

which are beyond the Company's control and are based on the Company's beliefs and expectations about future

events as of the date the statements are made. If the assumptions on which the Group bases its forward-looking statements change, actual results may differ from those expressed in such statements. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by

these forward-looking statements, including those set out under "Principal Risks" in the FY20 Group Annual

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Report for the financial year ended 31 May 2020. The Annual Report can be found on the Company's website (www.iggroup.com).

Forward-looking statements speak only as of the date they are made. Except as required by applicable law and regulation, the Company undertakes no obligation to update these forward-looking statements. Nothing in this statement should be construed as a profit forecast.

Some numbers and period on period percentages in this statement have been rounded or adjusted to ensure consistency with the financial statements. This may lead to differences between subtotals and the sum of individual numbers as presented. Acronyms used in this report are as defined in the Group's Annual Report.

About IG

IG empowers informed, decisive, adventurous people to access opportunities in over 17,000 financial markets. With a strong focus on innovation and technology, the Company puts client needs at the heart of everything it does.

IG's vision is to provide the world's best trading experience. Established in 1974 as one of the world's first providers of financial derivatives to retail traders, it continued leading the way by launching the world's first online and iPhone trading services.

IG is an award-winning,multi-product trading company which allows retail, professional and institutional clients to trade 24 hours a day, 7 days a week1. IG is the world's No.1 provider of CFDs2 and a global leader in forex derivatives. It provides leveraged services with the option of limited-risk guarantees and offers an execution- only stock trading service in the UK and Australia. IG has a range of affordable, fully managed investment portfolios, which provide a comprehensive offering to investors and active traders.

IG is a member of the FTSE 250, with offices across Europe, including a Swiss bank, Africa, Asia-Pacific, the Middle East and North America. IG Group Holdings plc holds a long-term investment grade credit rating of BBB- with a stable outlook from Fitch Ratings.

1. Excluding 10pm Friday (GMT) to 8am Saturday (GMT)
2. Based on revenue excluding FX (from published financial statements, June 2020)

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CEO review

We are a global financial technology and trading business that enables our clients to access opportunities in the financial markets. Our prudent approach to risk management is central to our business model and ensures that our interests are aligned with those of our clients, creating a sustainable and enduring revenue stream. Our financial performance metrics in the period have been outstanding, delivering record revenue and profits, with profit before tax 129% higher than the prior period. This performance would not have been possible without the continued commitment of our people and the resilience and flexibility of our technology. Throughout this period, the health and safety of our employees globally has been our priority, and the vast majority of our teams continue to work remotely in line with local government advice. The first six months of FY21 have been characterised by a number of headline geo-political events which have shaped the markets and driven continued levels of elevated volatility, albeit at lower levels than those seen in Q4 FY20. IG clients continued to identify increased opportunities to trade throughout the period.

We have seen a sustained step change in client numbers and client trading across our leveraged and non- leveraged product sets, aided by levels of financial market volatility remaining elevated compared to historical averages. Our strong brand, long-standing commitment to client service and improvements to our marketing capability have supported a record 238,600 clients trading with us during the first half of the financial year. Of these, 69% were OTC Leveraged clients. Our new clients exhibit similar characteristics to our previous client base and encouragingly, retention rates are comparable to historical averages. This provides us with confidence that this larger active client base, who at 30 November 2020 had £2.5 billion (31 May 2020: £2.0 billion) of funds held with us, will drive enduring revenues for the Group over the medium-term.

In July we announced further investment to support the next stage of development in the Significant Opportunities portfolio and to further increase scalability and resilience in our technology and operations. Our investment in technology has driven early results with a material increase in our platform capacity compared to the start of the financial year. This increase in capacity enabled us to absorb average daily client trading volumes that were twice the levels of the prior period and navigate days of extreme market volatility, such as the day of the Pfizer vaccine announcement, with no significant incidents. It is absolutely critical that we stay focussed on our technology capability. We have a strategy in place that is designed to ensure we continually improve, without sacrificing agility as we continue to service the growing needs of our clients.

Delivering as a responsible corporate citizen

We are passionate about our responsibility as a corporate citizen in our local communities around the world. We have made strong progress towards our ESG priorities in the first half of the financial year and we will continue to use our influence for the betterment of society and our environment.

Following the formation of the ESG Board Committee in FY20, we established an ESG Executive Working Group tasked with driving the improvements that we are targeting in this area. This team are in the process of developing a full ESG strategy for the Group which we aim to publish later in the year.

One of our central considerations as a Group is our responsibility to our clients. We work hard to ensure that we only onboard clients for whom our products are appropriate. Clients must demonstrate that they have sufficient financial resources, an appetite for risk, and knowledge of our products including the risks associated with them in order to open a leveraged trading account. We subsequently support our clients through their trading journey with us, providing them with tailored content, educational material, risk management tools and detailed analytics to help them analyse trading opportunities.

In the first half, we distributed £3 million from the Brighter Future fund, with £2 million donated to the Teach for All global network to support educational charities helping young people in over a dozen countries where IG operates, and a further £1 million to selected charities in need of Covid-19 pandemic relief.

We are also committed to operating as a carbon neutral company, and are currently exploring a longer-termnet-zero strategy and for the first time in H1 FY21, we made a submission to the Carbon Disclosure Project.

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