TP ICAP Reports Solid Q3, Revenues Grow 17% YoY

Despite the solid performance, the company’s full-year outlook remains cautious.

Interdealer broker TP ICAP has published a trading update this Friday for the three months ended September 30, 2019, with revenue posting solid gains during the period, reflecting favorable market conditions.

The trading update, which was published through the London Stock Exchange (LSE), shows that revenue for the three months was £478 million. This is 17 percent higher than the £408 million revenue the company reported in the same period of the previous year. It is also higher by 13 percent on a constant currency basis.

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Year to date, from January until the end of September, revenue was £1.4 billion. Against the same period last year, which reported revenue of £1.3 billion, TP ICAP has again managed to achieve a growth of 6 percent.

Breaking down revenues by divisions, the firm’s global broking revenue grew by 10 percent year-on-year, from £304 million in the third quarter of 2018 to £334 million in Q3 of 2019. 

However, year to date, revenues for the unit have fallen by one percent. According to the statement, this was due to a strong performance in Rates, which mostly offset a weaker performance in Credit and Equities.

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TP ICAP, which is the world’s largest wholesale market intermediary, energy, and commodities performance during the third quarter was strong, with revenue growing by 24 percent year-on-year. Revenue generated from its institutional services was also higher by 38 percent, against the same period of the previous year.

TP ICAP’s full-year forecast remains cautious

Despite the fact that the interdealer broker managed a solid performance in Q3 of 2019, the company maintains that its full-year guidance of low single-digit revenue growth on a constant currency basis remains unchanged.

For the fourth quarter of this year, the company highlights that current geopolitical uncertainties may have an impact on transaction volumes in the final quarter of the year.

Nicolas Breteau, Chief Executive Officer, said: “Today’s strong trading update demonstrates that TP ICAP’s trading portfolio is well placed to capitalise on volatile macro market conditions.”

“Separately, our ongoing investment in areas such as Energy & Commodities, Institutional Services and Data & Analytics already bears fruit and ensures a higher-growth, diversified revenue profile.”

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