TP ICAP registers slight decline in revenues in Q1 2024
TP ICAP Group plc (LON:TCAP) today provided a trading update for the three months ended 31 March 2024.
Total Group revenue in the first quarter of 2024 of £570m was 3% down, after a strong performance in the first quarter of 2023.
Performance in April 2024 was very strong. As a result, total revenue for the first four months was up 3%.
The Board remains comfortable with current market expectations for FY 2024, subject to movements in foreign exchange rates.
In Global Broking, following near record revenue in March 2023, due to the collapse of various US banks, Q1 2024 revenue declined by 7%. There was a significant rebound in April 2024 when the business recorded strong double-digit growth. Energy & Commodities (‘E&C’) revenue in Q1 2024 was up 8% with the division again benefitting from buoyant market conditions. E&C revenue has increased by 20% over the 12 months to March 2024, underlining its position as the world’s leading energy broker.
Parameta Solutions, the leading provider of OTC data, grew its revenue by 12%, driven by ongoing demand, new clients, and a focus on direct distribution.
At Liquidnet, the Cash Equities business, the largest part of the division, grew by 7%, building on the momentum established in the latter part of 2023. Following record revenues in March 2023, generated by the same market conditions as Global Broking, there was a decline in revenue recorded by Agency Execution. As a result, total Liquidnet revenue was down 4%.
TP ICAP continues to explore options to unlock the value of Parameta Solutions for shareholders, including a potential IPO of a minority stake in the business.