BGC Partners updates outlook for Q1 2022
BGC Partners, Inc. (NASDAQ:BGCP), a leading global brokerage and financial technology company, has updated its outlook for the quarter ending March 31, 2022.
BGC’s revenue and pre-tax Adjusted Earnings for the first quarter of 2022 are now expected to be towards the mid-point of the range of its previously stated outlook.
Let’s recall that BGC generated total revenue of $461.6 million during the fourth quarter of 2021, which included $19.9 million of Insurance revenue prior to the sale closing on November 1, 2021. Excluding Insurance, total revenue was $441.7 million, an improvement of 2.7 percent versus the fourth quarter a year ago.
Stronger volumes seen in the first half of the quarter softened, particularly across the Voice / Hybrid business in December. Overall, industry-wide secondary trading volumes were mixed during the fourth quarter, with solid activity across rates and energy products, while credit and European equity derivative volumes were challenged.
Revenue from BGC’s technology driven, higher margin Fenics business continued to outpace both the overall Company and industry. Fenics net revenue improved by 20.2 percent compared to the prior year, which represented a record 23 percent of total revenue, excluding Insurance.
Fenics revenue was a key factor in driving front office productivity 10.4 percent higher, improving post-tax Adjusted Earnings by 19.5 percent, and expanding margins by 370 basis points.
Fenics FX, an ultra-low latency electronic FX trading platform, generated strong double-digit volume and revenue growth during the quarter, outpacing FX ECN peers and the overall market.