Last checked at 1 Nov 2019 07:00
TP ICAP PLC
1 November 2019
TP ICAP plc (the "Company")
Trading Update for the three months ended 30 September 2019 (the "Period")
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."
For further information:
Analysts and investorsAl AlevizakosAlevizos.Alevizakos@tpicap.com+44 (0) 203 933 3040
MediaWilliam Baldwin-CharlesWilliam.Baldwin-Charles@tpicap.com+44 (0) 207 200 7124
About TP ICAP
§ TP ICAP brings together buyers and sellers in global financial, energy and commodities markets.
§ It is the world's largest wholesale market intermediary, with a portfolio of businesses that provide broking services, data & analytics and market intelligence, trusted by clients around the world.
§ We operate from offices in 31 countries, supporting award-winning brokers with market-leading technology.
www.tpicap.com