BGC Partners registers second highest ever quarterly revenue in Q1 2023
BGC Partners, Inc. (NASDAQ:BGCP), a leading global brokerage and financial technology company, today reported its financial results for the quarter ended March 31, 2023.
BGC’s revenue grew by 5.2 percent (7.0 percent in constant currency) to $532.9 million, as trading volumes increased following the end of zero-interest rates. This represents BGC Partners’ second highest ever quarterly revenue, second only to the first quarter of 2020 when the onset of the Covid-19 pandemic drove trading volumes to record levels.
Both BGC Partners’ Voice / Hybrid and Fenics businesses saw solid growth with revenue up across all asset classes. Fenics grew by 12.0 percent (14.4 percent in constant currency), generating a record $140.4 million in quarterly revenue, representing 26.3 percent of BGC’s total revenue.
Higher revenue and record quarterly front office productivity, which increased 9.2 percent, drove profitability higher. Pre-tax and post-tax Adjusted Earnings increased by 10.2 percent and 12.1 percent, respectively, and Adjusted EBITDA grew by 7.0 percent versus last year.
BGC’s growth has accelerated in the second quarter with overall revenue up 9 percent through the first 19 trading days. BGC expects its revenue to continue to grow as the relationship between trading volumes and the enormous increase in bond issuance returns, following the end of zero interest rates.
FMX continues to make progress with the CFTC on the final approval of its Futures Exchange and BGC Partners intends to announce FMX’s strategic investors prior to the launch. The company believes FMX will create enormous value for BGC shareholders as it competes across the world’s most valuable futures markets.
On May 2, 2023, BGC Partners’ Board of Directors declared a quarterly qualified cash dividend of $0.01 per share payable on May 31, 2023 to Class A and Class B common stockholders of record as of May 17, 2023. The ex-dividend date will be May 16, 2023.
On April 6, 2023, BGC Group, Inc. filed a Registration Statement on Form S-4 with the SEC in connection with its previously announced corporate conversion. Following receipt of regulatory approvals, and subject to other customary closing conditions, including shareholder approval, all of which are expected to be satisfied, the company currently expects to close the corporate conversion effective immediately after closing of BGC’s second quarter on June 30, 2023.
The Company will be renamed BGC Group, Inc. and its shares of Class A common stock will trade on Nasdaq under our new ticker “BGC.”
Howard W. Lutnick, Chairman and CEO of BGC Partners, commented:
“Our quarterly revenue grew over 5 percent, or 7 percent in constant currency, with growth across each of our business lines. Fenics had a record quarter with market leading growth of 12 percent, and over 14 percent in constant currency.
We expect BGC’s revenue to continue to grow as the relationship between trading volumes and the enormous increase in bond issuance returns following the end of zero-interest rates. Our growth has accelerated so far through the first 19 trading days of the second quarter with revenue up by 9 percent.
We expect to complete our corporate conversion on June 30th and trade under our new ticker “BGC” at the beginning of July.
With respect to FMX, progress continues with the CFTC on the final approval of our futures exchange, and we intend to announce our strategic investors prior to the launch.”