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TP ICAP PLC

TP ICAP PLC Revenue growth reflects favourable market conditions

TP ICAP PLC (LON: TCAP) has provided a trading update for the three months ended 30th September 2019.

Revenue:

  • Revenue growth reflected favourable market conditions in the Period.
  • Revenue in the Period of £478m was 17% higher than the £408m revenue reported for the equivalent period last year and 13% higher on a constant currency basis.
  • Year to date (January to September) revenue of £1,400m was 6% higher than the £1,318m revenue reported for the equivalent period last year and 3% higher on a constant currency basis.

Revenue by division (on a constant currency basis):

  • Global Broking revenue grew 10% in the Period relative to the equivalent period last year and was 1% lower year to date with strong performance in Rates offsetting weaker performance in Credit and Equities.
  • Energy & Commodities performance was very strong and revenue grew 24% in the Period relative to the equivalent period last year and 13% year to date as a result of selective hires and recent acquisitions, with encouraging macro conditions across the majority of our Energy & Commodities products, especially oil.
  • Institutional Services revenue grew by 38% in the Period relative to the equivalent period last year and 31% year to date as it continues to benefit from new hires and expanding its client base.
  • Data & Analytics revenue grew 9% in the Period against a strong prior year comparative period and 11% year to date as the business continues to benefit from strategic initiatives to launch new products and deepening its client relationships.
£mThree month period to September  Year to date  
Revenues20192018Change (%)20192018Change (%)
Global Broking33430410%982993-1%
Energy & Commodities987924%28525213%
Institutional Services11838%342631%
Data & Analytics35329%998911%
Constant Exchange Rates47842313%1,4001,3603%
Exchange Translation -15 -42
Reported47840817%1,4001,3186%

2019 full year guidance:

  • Despite a strong performance in the third quarter, our full year guidance of low single-digit revenue growth on a constant currency basis remains unchanged. We also highlight current geopolitical uncertainties which may have an impact on transaction volumes in the fourth quarter.

2019 preliminary results timetable:

  • The Company will report the preliminary results for the 2019 financial year on 10 March 2020.

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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