TP ICAP Group (LSE: TCAP), the world's largest interdealer broker, reported robust financial results for the first half of 2024 and announced plans for a third £30 million share buyback program.

TP ICAP Reports Strong H1 2024 Results

The London-based firm saw its revenue increase by 3% in constant currency to £1.14 billion, driven by strong performances in its Energy & Commodities (E&C) and Parameta Solutions divisions. Adjusted earnings before interest and taxes (EBIT) rose 9% to £170 million, marking a record first-half profit for the company.

“Our focus on diversification is paying off,” Nicolas Breteau, CEO of TP ICAP, commented on the results. “Group revenue increased by 3% in constant currency, building on last year's strong performance. We delivered record H1 profits with adjusted EBIT up 9%.”

The company's E&C division reported an 8% revenue increase, while Parameta Solutions, TP ICAP's market-leading OTC data business, saw a 10% growth in constant currency. The Global Broking segment maintained its market-leading position despite flat revenues compared to the previous year.

TP ICAP's operations also include Liquidnet, a private trading operator that became part of the Group following an acquisition over three years ago. For Liquidnet, revenues grew by 8%, thanks to an increasing market share in the US and EMEA.

“Liquidnet's enhanced operational gearing, coupled with market share gains, enabled the division to generate £24 million of EBIT or 14% of Group EBIT,” said the CEO.

Last month, the agency execution specialist revealed a new alliance with Boltzbit, an artificial intelligence company, to enhance its operations in the fixed-income primary markets and optimize the handling of new bond transactions.

The first half's results were primarily boosted by the second quarter, as revenues had declined in the first quarter.

Third £30M Share Buyback

In a separate move to further enhance shareholder value, TP ICAP announced it would commence its third £30 million share buyback program following the completion of its second buyback of the same amount. The company also declared an interim dividend of 4.8 pence per share, consistent with its dividend policy.

“The Third Buyback highlights the Board's continued confidence in the future prospects of TP ICAP, reflects its strong financial position, and is consistent with its dynamic capital management strategy, which is a key priority,” the company commented.

As of August 6, 2024, TP ICAP had repurchased 13,320,585 ordinary shares for a gross consideration of £28.9 million under its second buyback program. The third buyback will be conducted in compliance with relevant financial regulations and within pre-set parameters.

In mid-March, TP ICAP strengthened its footprint in the Asia-Pacific area by acquiring Aotearoa Energy, a brokerage firm from New Zealand that focuses on gas, power, and carbon markets. This acquisition is in line with TP ICAP's ambitions to expand in both the regional market and the energy and commodities sectors.