Q3 Trading Update

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

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
 

Media
Richard Newman
Direct: +44 (0) 7469 039 307

Email: 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.