TP ICAP GROUP PLC
(the
"Group")
5 November 2024
Trading Update for the nine months
ended 30 September 2024
Third quarter performance in constant currency, unless in brackets, which
denotes reported currency
Record Group revenue in the third
quarter of £557m, up 10% (+9% in reported
currency).
Global Broking revenue increased 9%
(+8%), maintaining the good second quarter momentum. Rates, the
largest and most profitable asset class, grew 14% (+15%),
benefitting from interest rate volatility.
Liquidnet delivered a very strong
third quarter, with revenue up 28% (+26%). Liquidnet Equities
recorded a 24% (+21%) increase, against a backdrop of continued
institutional block market activity. Multi-asset agency brokerage
revenue was up 33% (+33%), driven by strong growth in Relative
Value strategies.
Energy & Commodities (E&C)
revenue increased 3% (+2%), following a record third quarter last
year.
Parameta Solutions, our
market-leading over-the-counter (OTC) data business, grew 9%
(+6%).
Nine-month performance in constant currency, unless in brackets, which
denotes reported currency
Group revenue of £1,701m, up 5% (+3%
in reported currency). All four divisions traded well, underlining
the broad, diversified nature of the Group.
Global Broking revenue increased 3%
(+1%), benefiting from favourable market conditions, with ongoing
volatility across key asset classes, particularly Rates.
Liquidnet posted a 14% (+11%)
increase in revenue, as growth accelerated following a strong first
half, when revenue increased 8%. Liquidnet Equities grew 18%
(+14%), whilst multi-asset agency brokerage reported 9% (+8%)
growth.
E&C revenue grew 6%
(+4%).
Parameta Solutions revenue was up
10% (+7%).
The Board is comfortable with FY
2024 market expectations for adjusted EBIT, subject to the impact
of FX movements, especially the US Dollar (USD) against sterling.
Approximately 60% of Group revenues and 40% of Group costs are
USD-denominated.
Business Update
The Group is focused on delivering
its three strategic priorities - Transformation, Diversification
and Dynamic Capital Management - and will update on progress when
it publishes, on 11 March 2025, its 2024 Preliminary Results. As
previously announced at the Group's Interim Results in August, we
are progressing strategic options in relation to Parameta
Solutions. They include a potential offering, which might entail a
listing in the United States, with the Group maintaining a majority
stake. There is no certainty about either a public offering, or its
location.
Forward looking statements
This document contains forward
looking statements with respect to the financial condition, results
and business of the Company. By their nature, forward looking
statements involve risk and uncertainty and there may be subsequent
variations to estimates. The Company's actual future results may
differ materially from the results expressed or implied in these
forward-looking statements.
Enquiries
Group Company Secretary
Vicky Hart
Email: companysecretarial@tpicap.com
Analysts and investors
Dominic Lagan
Direct: +44 (0) 20 3933
0447
Email: dominic.lagan@tpicap.com
Media
Richard Newman
Direct: +44 (0) 7469 039 307
Email: richard.newman@tpicap.com
About TP ICAP
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TP ICAP connects buyers and sellers
in global financial, energy and commodities markets.
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It is the world's leading wholesale
market intermediary, with a portfolio of businesses that provide
broking services, data & analytics and market intelligence,
trusted by clients around the world.
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We operate from more than 60 offices
across 28 countries, supporting brokers with award-winning and
market-leading technology.
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Further information on the company
and its activities is available on the Company's
website:
www.tpicap.com.