IG Group Holdings plc (LSE: IGG) announced today (Wednesday) the commencement of the second tranche of its £150 million share buyback program. The company has instructed UBS AG London Branch to execute this phase. It will involve repurchasing up to £75 million worth of shares.

IG Taps UBS for £75M Share Repurchase Program

The second tranche, set to begin immediately, is expected to conclude by January 31, 2025. This follows the successful completion of the first £75 million tranche, which was initiated in August and managed by Morgan Stanley & Co. International Plc.

The buyback will be conducted within the parameters approved by shareholders at IG Group's annual general meeting held on September 18, 2024. Under this authority, the company can repurchase up to 36,934,031 shares during the second tranche.

IG Group has emphasized that the sole purpose of the buyback program is to reduce share capital. All repurchased shares will be held in treasury, potentially affecting the company's outstanding share count and earnings per share calculations.

This latest buyback initiative comes on the heels of IG Group's fiscal year 2024 results, which saw some headwinds. The company reported an 11% decrease in pre-tax profit to £400.8 million and a 3% decline in total annual revenue to £987.3 million.

“I’ve identified areas requiring change,” stated Breon Corcoranm the CEO of IG Group. “We have lots of work to do to take IG to the next level and address the challenges we face.”

However, as it turns out, the previous quarter looked much better.

IG's Fiscal Q1 2025 Revenue Sees 15% Increase

The London-listed company concluded the first fiscal quarter of 2025, spanning June to August, with a significant revenue increase. Total revenue reached £278.9 million, marking a 15% rise compared to the previous year. This growth was primarily fueled by an increase in revenue per client and heightened volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in various asset classes observed in early August.

Additionally, IFG reported a 14% increase in over-the-counter (OTC) derivatives revenue, which amounted to £208.1 million. Revenue from exchange-traded derivatives also saw a notable jump of 20%, reaching £59.6 million. The rest of the revenue, totaling £11.2 million, was derived from stock trading and investments.

Meanwhile, Daily FX, previously a trading news and forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term analysis platform operated by IG Group, has been discontinued, with its website now redirecting to the group's main site. The company also launched the “Trade Live with IG” morning show.