Tradeweb’s Revenue Rises 5.7% as Q1 ADV Hits Record $1.4T

Thursday, 27/04/2023 | 12:54 GMT by Solomon Oladipupo
  • 'Strong growth' came despite 'challenging market conditions'.
  • Record ADV rode on increases in daily averages across sub-markets.
Tradeweb

Tradeweb Markets’ revenue rose 5.7% to $329.2 million during the first quarter of 2023, which was pushed by increases in trading rates, credit, and money markets. The Nasdaq-listed electronic markets operator disclosed this on Thursday, noting that its equities market revenue declined by 1.3% quarter-over-quarter to $26.2 million.

Furthermore, Tradeweb in its newly released Q1 2023 financial results said the average daily volume (ADV) of trades across its marketplaces jumped 16.2% quarter-over-quarter (QoQ), reaching a record $1.4 trillion. The peak performance rode on record increases in ADV of traded European government bonds, swaps and swaptions with a year or less validity window, and fully electronic US High Grade credit, equity convertibles, swaps and options.

In addition, record increases in the ADV of retail US government bonds and retail money markets contributed to the record growth in the overall daily average.

“Despite challenging market conditions, including rising market volatility and economic concerns relating to banking sector turmoil, Tradeweb was steadfast in our approach to providing the best service for our clients and produced strong growth across many areas of our business,” explained Billy Hult, the CEO of Tradeweb.

Tradeweb Sees Rise in Net Income in Q1

During the first quarter, Tradeweb’s net income jumped 4.9% QoQ to $102.2 million, with adjusted net income rising 12.2% to $129 million.

Moreover, the electronic marketplace operator’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also shot up 7% to $172.2 million at the end of March, which is up from $160.6 million during the prior year period.

Hult previously said that at the end of 2022, Tradeweb reported its 23rd consecutive year of revenue growth. This came as the company generated $293 million in revenue during the fourth quarter of last year.

Tradeweb Targets AUD 125M Yieldbroker Acquisition

Meanwhile, Tradeweb disclosed on Thursday that it is in advanced talks to acquire Yieldbroker, an Australian government bond and interest rate derivatives trading platform, for AUD 125 million. The operator believes that the takeover could help it grow its footprint in the Asia Pacific region.

During the last quarter, Tradeweb introduced a new market data service for the calculation of Indicative Net Asset Values (iNAVs) for exchange-traded funds (ETFs) in real-time. The company onboarded money manager BlackRock as the first issuer of an ETF using iNAVs.

LSEG and Deutsche Bank results; crypto in Hong Kong; read today's news nuggets.

Tradeweb Markets’ revenue rose 5.7% to $329.2 million during the first quarter of 2023, which was pushed by increases in trading rates, credit, and money markets. The Nasdaq-listed electronic markets operator disclosed this on Thursday, noting that its equities market revenue declined by 1.3% quarter-over-quarter to $26.2 million.

Furthermore, Tradeweb in its newly released Q1 2023 financial results said the average daily volume (ADV) of trades across its marketplaces jumped 16.2% quarter-over-quarter (QoQ), reaching a record $1.4 trillion. The peak performance rode on record increases in ADV of traded European government bonds, swaps and swaptions with a year or less validity window, and fully electronic US High Grade credit, equity convertibles, swaps and options.

In addition, record increases in the ADV of retail US government bonds and retail money markets contributed to the record growth in the overall daily average.

“Despite challenging market conditions, including rising market volatility and economic concerns relating to banking sector turmoil, Tradeweb was steadfast in our approach to providing the best service for our clients and produced strong growth across many areas of our business,” explained Billy Hult, the CEO of Tradeweb.

Tradeweb Sees Rise in Net Income in Q1

During the first quarter, Tradeweb’s net income jumped 4.9% QoQ to $102.2 million, with adjusted net income rising 12.2% to $129 million.

Moreover, the electronic marketplace operator’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also shot up 7% to $172.2 million at the end of March, which is up from $160.6 million during the prior year period.

Hult previously said that at the end of 2022, Tradeweb reported its 23rd consecutive year of revenue growth. This came as the company generated $293 million in revenue during the fourth quarter of last year.

Tradeweb Targets AUD 125M Yieldbroker Acquisition

Meanwhile, Tradeweb disclosed on Thursday that it is in advanced talks to acquire Yieldbroker, an Australian government bond and interest rate derivatives trading platform, for AUD 125 million. The operator believes that the takeover could help it grow its footprint in the Asia Pacific region.

During the last quarter, Tradeweb introduced a new market data service for the calculation of Indicative Net Asset Values (iNAVs) for exchange-traded funds (ETFs) in real-time. The company onboarded money manager BlackRock as the first issuer of an ETF using iNAVs.

LSEG and Deutsche Bank results; crypto in Hong Kong; read today's news nuggets.

About the Author: Solomon Oladipupo
Solomon Oladipupo
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About the Author: Solomon Oladipupo
Solomon Oladipupo is a journalist and editor from Nigeria that covers the tech, FX, fintech and cryptocurrency industries. He is a former assistant editor at AgroNigeria Magazine where he covered the agribusiness industry. Solomon holds a first-class degree in Journalism & Mass Communication from the University of Lagos where he graduated top of his class.
  • 1050 Articles
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