TP ICAP Group plc (LON:TCAP) has announced its 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
TP ICAP 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.
