REG - TP ICAP Group PLC - Trading Statement

TP IcapAnnouncement

11/05/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220511:nRSK0217La&default-theme=true

RNS Number : 0217L  TP ICAP Group PLC  11 May 2022

TP ICAP Group plc ("TP ICAP" or the
"Group")

 

11 May 2022

 

Trading update for the three months ended 31 March 2022

 

Highlights

·      Group revenue, excluding Liquidnet, up 3% in constant currency.
Including Liquidnet, Group revenue up 14%; growth across all business
divisions;

·      Varied market conditions: Higher level of volatility and trading
activity in January / first half of March; more subdued volumes in February
and later in March;

·      We again increased overall market share during the first quarter;

·      Better revenue mix: growth across all Global Broking asset
classes other than Equities (unchanged);

·      Global Broking revenue per broker up 8%;

·      Data & Analytics again delivered double-digit revenue growth;

·    Good progress on transformation programme: TP Interest Rate Options
desk now has #2 market share (from #4), benefiting from Fusion deployment.

 

Revenue by division

                   Three months to

31 March
                                     2022               2021 as reported £m   2021 in constant currency £m   Reported change  Constant currency change

                                     £m
    Global Broking                   317                306                   309
    Inter-division revenues(1)                    5     5                     5
 Total Global Broking                322                311                   314                            +4%              +3%
    Energy & Commodities             106                100                   101
    Inter-division revenues(1)       1                  1                     1
 Total Energy & Commodities          107                101                   102                            +6%              +5%
    Excluding Liquidnet              27                 27                    27                             0%               0%
    Liquidnet(2)                     62                 8                     8                              +675%            +675%
 Total Agency Execution              89                 35                    35                             +154%            +154%
    Data & Analytics                 40                 36                    36                             +11%             +11%
    Post-trade Solutions             4                  6                     6                              -33%             -33%
 Total Parameta Solutions            44                 42                    42                             +5%              +5%
 Inter-division eliminations(1)      (6)                (6)                   (6)
 Total Revenue                       556                483                   487                            +15%             +14%
 Total Revenue (excl. Liquidnet)     494                475                   479                            +4%              +3%

 

1.     Inter-division charges have been made by Global Broking and Energy
& Commodities to reflect the value of proprietary data provided to the
Parameta Solutions division. The Global Broking inter-division revenues and
Parameta Solutions inter-division costs are eliminated upon the consolidation
of the Group's financial results.

2.     In Q1 2021, £6m of revenue was included within Agency Execution
relating to the post-acquisition period of Liquidnet (the acquisition
completed on 23 March 2021);  This Liquidnet revenue has been restated to
£8m by including an additional £1m of revenue previously reported in Global
Broking, and £1m previously reported in COEX Partners (in Agency Execution),
reflecting the transfer of desks, which, due to their complementary nature and
strategic fit, have been reclassified to be managed and reported as part of
Liquidnet.

 

Revenue by division (constant currency basis):

·      Global Broking revenue up 3%, benefitting from increased market
volatility. Revenue grew in Rates, Credit, FX & Money Markets and Emerging
Markets, but was flat in Equities, resulting in an improved mix.

o  Rates activity increased most notably in short-dated contracts, which have
lower transaction values compared with longer-dated contracts;

o  Revenue per broker (productivity) improved by 8%.

·      Energy & Commodities revenue up 5% driven by growth in Oil
and Power & Gas in the US, while in Europe, Power & Gas declined, as
high prices and significant volatility led to lower volumes.

·      Agency Execution revenue of £89m increased by 154%. Liquidnet
revenue of £62m was in line with market activity. Market share increased
marginally in the US and was stable in Europe, where we remain a market
leader.

·     Parameta Solutions: Continued double-digit revenue growth in Data
& Analytics (+11%).

 

Strategic progress

·      Mark Govoni, former President of US Brokerage at Instinet, joined
the Group on 2 May 2022 as the new CEO of Agency Execution, with a primary
focus on driving the Liquidnet growth strategy;

·      Parameta Solutions became an FCA authorised benchmark
administrator in May: the first inter-dealer broker that will administer over
the counter ('OTC') benchmarks;

·      Digital Assets Spot Platform: Hudson River Trading added to the
list of market makers; custodian network expanded to include BitGo and
Komainu.

2022 AGM:

·      The Group will host its Annual General Meeting today, Wednesday
11 May 2022, at 2.15pm (BST) at the offices of Allen & Overy LLP, One
Bishop's Square, London, E1 6AD.

 

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:

Analysts and investors
Dominic Lagan

Direct: +44 (0) 20 3933 0447

Email: dominic.lagan@tpicap.com (mailto:dominic.lagan@tpicap.com)

Media
Richard Newman

Direct: +44 (0) 7469 039 307

Email: richard.newman@tpicap.com (mailto:William.Baldwin-Charles@tpicap.com)

 

 

About TP ICAP

·      TP ICAP connects buyers and sellers in global financial, energy
and commodities markets.

·      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.

·      We operate from more than 60 offices across 27 countries,
supporting brokers with award-winning and market-leading technology.

 

Further information on the company and its activities is available on the
Company's website: www.tpicap.com (http://www.tpicap.com)

 

 

TP ICAP Group plc

LEI: 2138006YAA7IRVKKGE63

11 May 2022

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBBLLFLELEBBB