Leucadia’s H1 Financials Reflect Strong Rebound, Revenues Trend Higher

Jefferies investment banking and Berkadia’s strong debt origination helped boost the group's H1 financial results.

US holding company Leucadia National Corporation (NYSE: LUK) has reported its latest H1 financials for the period ending June 30, 2017. On the back end of a successful quarterly release earlier this year, the group has seen its revenues and key segments continue to rise. Taken as a whole, H1 2017 managed to mount sizable gains in both revenues and income, helped by several of its core businesses.

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For the period ending June 30, 2017, Leucadia reported net revenues of $5.6 billion in H1 2017, good for a rise of 20.7 percent year-over-year from $4.6 billion in H1 2016. In particular, Q2 2017 represents the fifth straight quarter in which the group saw this figure climb higher. A few notable drivers of Leucadia’s revenues during H1 were a strong performance in Jefferies investment banking and Berkadia’s strong debt origination and investment sales divisions.

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Moreover, during H1 2017, FXCM restructured and stabilized its business following its exit from US market back in February. For its part, Leucadia has nearly recovered the full amount of cash it had originally invested into FXCM back in 2015, following the FX industry convulsion propagated by the Swiss National Bank.

Leucadia still maintains $122.1 million of principal balance outstanding on its loan for the period ending June 30, 2017. Of note, FXCM’s offloading of its non-core interest in FastMatch to Euronext in Q2 helped pay off a portion of the loan with the remainder being funded by other non-core asset sales and operating cash flow.

Financials breakdown

Looking at its net income, Leucadia completely pared what had been a loss in the year prior, registering a figure of $367.9 million in H1 2017. This managed to erase a figure of -$147.9 million in H1 2016. Furthermore, the group’s total earnings per share (EPS) on a diluted basis also moved into positive territory during H1 2017 to $0.91, up from -$0.44 in the year prior.

The latest figures showed an EPS per diluted share of $0.75 in Q1 2017, relative to -$0.60 one year ago in Q1 2016. Rich Handler, CEO of Leucadia, and Brian Friedman, President of Leucadia, commented on the earnings: “We are pleased with Leucadia’s second quarter results, reflecting a solid quarter for Jefferies, as previously reported, continued good results at National Beef and progress across Leucadia.”

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