(Alliance News) - TP ICAP Group PLC on Tuesday reported a decline in revenue in the first half of 2021, as a lack of volatility in financial markets hurt the trading firm.
First-half revenue fell 1.2% year-on-year on a constant currency basis, to GBP936 million from GBP947 million, the company said in a trading update. On a reported basis, revenue fell 5.5% from GBP990 million.
Shares were down 3.0% to 194.00 pence in London on Tuesday morning.
Excluding Liquidnet, which has contributed GBP55 million in revenue since TP ICAP acquired it in March, revenue was down 7% in constant currency and 11% on a reported basis.
The decline reflects "quieter markets compared with the extraordinary volumes seen in March 2020," the London-based company said. TP ICAP provides broking and other services to markets including stocks, commodities and currencies, and benefits from high trading volume and volatility.
2021 revenue is expected to be "broadly in line with 2020 on a constant currency basis," excluding Liquidnet. In 2020, the company made GBP1.79 billion revenue and GBP129 million pretax profit. 2021 earnings have been hit by the stronger pound, and the company is not engaged in currency hedging.
"Our revenue performance reflects challenging trading conditions caused by the combination of very quiet secondary markets and the ongoing disruption from Covid-19. Against this market backdrop, we have focused on those areas that we can control: namely, executing on our strategy and managing costs," Chief Executive Nicolas Breteau said.
By Ivan Edwards; ivanedwards@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
TP ICAP (TCAP)