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IG Group Holdings plc

1 IG Group Holdings PLC Results for the year ended 31 May 2017 18 July 2017 IG Group Holdings plc ( IG , the Group , the Company ), a global leader in online trading, today announces results for the year ended 31 May 2017 . Financial Summary Net trading revenue(1) up 8% at million Operating expenses up 14%, reflecting continued investment in effective marketing Profit before tax up 3% to million; profit before tax margin(2) (FY16: ) Diluted EPS up 3% at pence Final dividend of pence per share; full year dividend up to pence per share Operating and Strategic Summary New client numbers, defined as first trades, ahead of prior year by 38%.

1 IG GROUP HOLDINGS PLC Results for the year ended 31 May 2017 18 July 2017 IG Group Holdings plc (“IG”, “the Group”, “the Company”), a global leader in online trading, today announces results for the

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Transcription of IG Group Holdings plc

1 1 IG Group Holdings PLC Results for the year ended 31 May 2017 18 July 2017 IG Group Holdings plc ( IG , the Group , the Company ), a global leader in online trading, today announces results for the year ended 31 May 2017 . Financial Summary Net trading revenue(1) up 8% at million Operating expenses up 14%, reflecting continued investment in effective marketing Profit before tax up 3% to million; profit before tax margin(2) (FY16: ) Diluted EPS up 3% at pence Final dividend of pence per share; full year dividend up to pence per share Operating and Strategic Summary New client numbers, defined as first trades, ahead of prior year by 38%.

2 15% in the OTC leveraged business Purchased and integrated the assets of DailyFX, a global retail FX research and education portal, for $40 million Continued progress in strategic evolution towards leadership in trading and investments o Share dealing offer rolled out to Australia and France o Launched a discretionary managed Investment service in the UK o Limited Risk account, with no-negative guarantee, rolled out globally o New platform released to all spread betting clients Regulatory uncertainty created by a number of developments during the year o IG is compliant with the results of consultations from BaFin and the AMF o FCA delayed final industry regulatory proposals in June 2017 , pending the outcome of ESMA s discussions Peter Hetherington, Chief Executive, commented.

3 It was an interesting and challenging year in terms of global news flow, especially in the political and regulatory sphere, but the year turned out to be one of the least volatile in financial markets for decades. Against this backdrop I am pleased that IG once again delivered record revenue and profits. The industry came under elevated regulatory scrutiny during the year. At IG we are proud of our track record of compliance and our culture of placing the client at the heart of our business. We try to do what is right, not just what is possible under the rules. We understand that leveraged trading products aren't right for everyone, and we therefore believe that it is in the best interests of many consumers to be prevented from accessing them.

4 We seek to only offer our products to an appropriate audience and consistently innovate to improve client outcomes. IG s Limited Risk account, where clients can never lose more money than they have on their account, and their maximum risk per position is known, is a good example of this type of innovation. A third of our new trading accounts in the UK now use this feature. Unfortunately client outcomes in the industry have suffered in recent years unsuspecting consumers have been bombarded by providers who market the leveraged product to an inappropriate audience, often using bonus offers to attract clients.

5 This is clearly wrong and we fully support regulators attempts to stamp out this behaviour. Our efforts are concentrated on ensuring that appropriate clients can continue to trade on a level playing field. IG will continue to carefully consider and improve its procedures to ensure we either set or achieve industry best practice. We have a very long history of engaging constructively and productively with all our regulators and we look forward to continuing to do so. This external uncertainty is unsettling for our people and I am proud of the way they have pulled together to accelerate the differentiation of our offering.

6 This has involved some difficult choices, as we have reduced running costs to give us scope to invest in strategic projects. As the original and the biggest firm in our industry, I believe IG is well placed to evolve and prosper and to continue to empower our clients to access opportunities in financial markets. All current financial results listed are for the year ended 31 May 2017 . All general references to the prior period , the prior year , and last year mean the year ended 31 May 2016, unless otherwise specified. (1) Net trading revenue is trading revenue after deducting introducing partner commissions.

7 All references to revenue in the Group Performance and Operating and Financial reviews are made with regards to net trading revenue. (2) Profit before tax margin is profit before tax divided by net trading revenue. 2 Financial summary For the year ended 31 May 2017 FY17 FY16 Up/(Down) % Net trading revenue ( m) Profit before taxation ( m) Profit after taxation ( m) Diluted earnings per share (pence) Total dividend per share (pence) Net own funds generated from operations ( m) ( ) Further information IG Group FTI Consulting Kieran McKinney Neil Doyle Liz Scorer Edward Berry 020 7573 0026 / 0727 020 3727 1141 / 1046 Analyst presentation There will be an analyst and investor presentation on the results at 9:30am (UK Time) on Tuesday 18 July 2017 at IG Group , Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA.

8 The presentation will also be accessible live via audio webcast at and via a conference call on the following number: All locations: +44 20 3059 8125 The audio webcast of the presentation and a transcript will be archived at: Disclaimer - forward-looking statements and market abuse regulations This preliminary statement, prepared by IG Group Holdings plc (the Company ), may contain forward-looking statements about IG Group Holdings plc and its subsidiaries (the Group ). Forward-looking statements involve uncertainties because they relate to events, and depend on circumstances, that will, or may, occur in the future.

9 If the assumptions on which the Group bases its forward-looking statements change, actual results may differ from those expressed in such statements. Forward-looking statements speak only as of the date they are made and 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 in order to ensure consistency with the financial statements. This announcement contains inside information, which is disclosed in accordance with the Market Abuse Regulations.

10 All market share data has been provided by Investment Trends Limited Investment Trends UK Leveraged Trading Report released July 2017 IG empowers informed, decisive, adventurous people to access opportunities in over 15,000 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 be a global leader in retail trading and investments. Established in 1974 as the world s first financial spread betting firm, it continued leading the way by launching the world s first online and iPhone trading services.


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