IG Group ups dividend after "strong first half", agrees Underdog buy

IG Group Holdings PLC on Thursday evening reported increased revenue and earnings for its first half-year, and announced its agreement to acquire US sports prediction market operator Underdog Sports Holdings Inc.

IG Group in November changed its financial year-end date to December 31 from May 31.

The London-based online trading platform's total revenue for the first six months of 2026 increased 18% to £642.8 million from £545.2 million for the six months ended June 30, 2025. On an organic continuing basis, revenue increased 17% to £623.7 million from £534.8 million.

Previously, in early July, IG Group forecast an 18% revenue increase to £643 million with 16% organic growth to £624 million.

Net trading revenue increased 21% to £588.8 million from £485.4 million. Organic continuing revenue rose 20% to £574.2 million.

Earnings before interest, tax, depreciation and amortisation rose 4% to £282.0 million from £270.4 million, which IG said was "despite lower interest income - as rates declined and more was passed through to customers - increased investment in our propositions and marketing, and costs associated with the strategic review."

The strategic review, which IG announced in March, "is now substantially complete," it said.

IG Group proposed a 14.46 pence interim dividend for the first half.

Looking ahead, IG Group "expects full-year results in line with market expectations," leaving its medium guidance unchanged when excluding Underdog. This includes medium-term organic total revenue CAGR growth of at least 10%.

The company previously forecast organic total revenue growth of 10% to 15% from the 2025 base of £1.10 billion, excluding Freetrade and Independent Reserve. It also said it expected net interest income between £110 million and £120 million, with Ebitda margins in the mid-40s percentage range.

"This was a strong first half," commented Chief Executive Officer Breon Corcoran. "Faster product velocity, increased marketing at attractive returns and a rapidly growing customer base drove double-digit revenue and adjusted EPS growth.

"Our proposed acquisition of Underdog announced on 30 July 2026 marks a decisive step in our strategy, establishing IG as a leader in the fast-growing US prediction markets."

Also on Thursday evening, IG Group announced its proposed acquisition of Underdog, a US-based daily fantasy sports and prediction markets operator.

Total consideration for the deal is approximately USD1.3 billion, comprising upfront consideration based on an enterprise value of approximately USD1.1 billion and an earnout, for Underdog shareholders, of approximately USD200 million.

IG Group said it expects Underdog, which is "the third-largest US prediction markets venue by US regulated notional volume flow," to more than double its US revenue.

It also expects Underdog to increase US monthly active customers more than tenfold, and to "establish IG as a leader in US prediction markets".

IG added that it expects the takeover to accelerate its standalone revenue, EBITDA and adjusted earnings per share growth over the medium term.

IG Group shares closed up 1.0% at 1,706.00 pence on Thursday in London.

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