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.
| £m | Three month period to September | Year to date | |||||
| Revenues | 2019 | 2018 | Change (%) | 2019 | 2018 | Change (%) | |
| Global Broking | 334 | 304 | 10% | 982 | 993 | -1% | |
| Energy & Commodities | 98 | 79 | 24% | 285 | 252 | 13% | |
| Institutional Services | 11 | 8 | 38% | 34 | 26 | 31% | |
| Data & Analytics | 35 | 32 | 9% | 99 | 89 | 11% | |
| Constant Exchange Rates | 478 | 423 | 13% | 1,400 | 1,360 | 3% | |
| Exchange Translation | -15 | -42 | |||||
| Reported | 478 | 408 | 17% | 1,400 | 1,318 | 6% |
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.”
