# TP ICAP PLC Revenue growth reflects favourable market conditions

- Link: https://www.directorstalkinterviews.com/tp-icap-plc-revenue-growth-reflects-favourable-market-conditions/412796922
- Published: 2019-11-01T07:36:12+00:00
- Author: Giles Arbor

**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.”

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