BGC registers 15.9% Y/Y growth in revenues in Q3 2023
BGC Group, Inc. (NASDAQ:BGC), a global brokerage and financial technology company, today reported its financial results for the quarter ended September 30, 2023.
BGC’s revenue grew by 15.9 percent to $482.7 million, improving across every geography in the third quarter. This growth was driven by the Americas and EMEA which improved by 19.0 percent and 16.9 percent, respectively, with our Asia Pacific revenues up 5.9 percent.
The Company generated strong double-digit growth across all earnings metrics during the quarter, driven by higher revenues across Fenics and Voice / Hybrid, along with record front office productivity.
Pre-tax Adjusted Earnings grew by 23.1 percent to $101.9 million. Pre-tax Adjusted Earnings margins improved by 125 basis points to 21.1 percent, BGC’s twelfth consecutive quarter of year-over-year margin expansion.
Post-tax Adjusted Earnings increased by 21.4 percent to $94.1 million, or $0.19 per share, an 18.8 percent improvement. Adjusted EBITDA improved by 27.0 percent to $135.9 million for the third quarter.
BGC completed its conversion to a Full C-Corporation on July 1, 2023.
BGC’s Board of Directors declared a quarterly qualified cash dividend of $0.01 per share payable on December 1, 2023 to Class A and Class B common stockholders of record as of November 17, 2023. The ex-dividend date will be November 16, 2023.
Howard W. Lutnick, Chairman and CEO of BGC Group, commented:
“We had another outstanding quarter, generating revenue growth of 16 percent, reflecting increased volumes across all of our asset classes. BGC is extraordinarily well positioned to benefit from the return of interest rates, which we expect to drive our trading volumes, revenue and profitability higher for the foreseeable future.
Fenics revenue improved by 19 percent, outperforming both its electronic trading platform and exchange peers. This was led by another record quarter for Fenics Growth Platforms, which grew by over 45 percent. Fenics UST, our electronic U.S. Treasury platform, reached a record 25 percent market share of the volume traded on U.S. Treasury exchange marketplaces during the year.
We continue to make significant progress with FMX. We look forward to communicating additional updates and details during the quarter.”