REG - TP ICAP Group PLC - Trading Statement

TP IcapAnnouncement

01/11/2022 07:17

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RNS Number : 8199E  TP ICAP Group PLC  01 November 2022

TP ICAP GROUP PLC ("TP ICAP" or the
"Group")

LEI: 2138006YAA7IRVKKGE63

 

1 November
2022

 

Trading update for the nine months ended 30 September 2022

 

 

Year-to-date performance (in constant currency, unless in brackets, which
denotes reported currency)

 

Revenue

 

Total Group revenue of £1,588m in the first nine months of 2022 was up 10%
(+15% in reported currency), compared with the same period in 2021. The Group
benefitted from favourable market conditions in Global Broking, particularly
in Rates, our largest, and most profitable, asset class. The ongoing
strengthening of the US Dollar has been a meaningful tailwind: approximately
60% of the Group's revenue (and approximately 40% of costs) are US Dollar
denominated. Excluding Liquidnet (completed on 23 March 2021), revenue
increased by 7% (+12%).

 

At the divisional level, Global Broking revenue was up 9% (+14%). All asset
classes generated high single digit to double digit growth. This performance
underlines the strength of the franchise, which is well positioned as Central
Banks continue to withdraw liquidity and increase interest rates.

 

In Energy & Commodities (E&C), revenue declined by 3% (+3%), in line
with exchange volumes. Oil, our largest asset class in E&C, delivered low
single digit growth. As previously reported, the European Gas & Power
market is challenging: significant price rises and increased exchange margin
requirements resulted in liquidity contracting and low levels of market
activity.

 

Agency Execution revenue, including Liquidnet, was up 34% (+40%). Liquidnet
revenue, on a proforma basis, declined by 9% (-7%). In Europe, there was a
decline in larger block market trading activity. In the US, there was a shift
in mix towards lower rate client segments. Liquidnet's market share in the US
and Europe was broadly unchanged. Parameta Solutions revenue grew by 6%
(+15%), with Data & Analytics (D&A) up 9% (+18%).

 

The Group, as a whole, continues to trade in line with the Board's
expectations.

 

Third quarter performance (in constant currency, unless in brackets, which
denotes reported currency)

 

During the third quarter of 2022, total Group revenue was £508m, up 5% (+14%)
compared with the same period in 2021.

 

Global Broking revenue was up 12% (+20%). All asset classes generated high
single digit to double digit growth, reflecting the continued strong
performance. E&C revenue declined by 12% (-3%). In Agency Execution,
including Liquidnet, revenue declined by 1% (+6%). Liquidnet revenue declined
by 22% (-18%), reflecting the market conditions noted above. In addition, US
Agency Alternative Trading System (ATS) volumes, a key contributor for
Liquidnet, were subdued, compared with exchanges and OTC venues. Parameta
Solutions revenue grew by 6% (+22%), while D&A revenue was up 7% (+24%).

 

2022 preliminary results

 

The Group will report its 2022 preliminary results on 14 March 2023. At the
results, the Agency Execution division will be reported on a consolidated
basis as Liquidnet.

 

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:richard.newman@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) .

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