Financial technology company NEX Group has announced its trading statement for the period of April 1, 2018, to June 30, 2018, as well as its revenue for the first quarter of this year. The results were posted ahead of its Annual General Meeting today.
Group revenue for the first quarter of this year, ending June 30, 2018, increased by seven percent on a constant currency basis, or three percent on a reported basis. According to the statement, the company benefited from divisional performance and FX hedges.
NEX’s markets revenue also increased on a constant currency basis, up two percent. However, on a reported basis revenue decreased by two percent. This was due to the phasing of the China Foreign Exchange TradeSystem (CFETS) revenue recognition, which held back growth.
Looking at NEX Optimisation’s revenue, on a constant currency basis the first quarter saw a jump of seven percent when compared to the same period last year. On a reported basis this figure comes in at an increase of four percent.
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Commenting on the results, Michael Spencer, Group Chief Executive Officer of NEX said: “We’ve seen a solid start to the year with episodic volatility driving volumes across the EBS and BrokerTec platforms and increased demand for our products and services from TriOptima and Reset.”
In March this year, Finance Magnates reported that Chicago-based CME Group officially confirmed that it would acquire the NEX Group. The size of the deal is estimated at £3.9 billion ($5.5 billion). It is expected to be completed in the second half of this year.
CME Group is seeking to acquire all shares as an indicative cash price of £10 ($14) per share. At the time of the announcement, shares in NEX closed up 9.8 percent at 976.43p giving the company a market value of nearly £3.71 billion ($5.22 billion).
In the statement, Spencer also spoke on the progress of the deal. He added: “as previously outlined, the transaction with CME remains on track to complete in the second half of the current calendar year.”