TP ICAP PLC (LON:TCAP) reported a weaker performance in the third quarter of 2020 as broking revenue dropped off after a strong first half.
Revenue for the FTSE 250-listed interdealer broker in the third quarter was down 19% on the prior year, though it reported “good progress in executing on its three strategic pillars of electronification, liquidity aggregation and diversification”.
Group revenue of £1.4bn for the first nine months of 2020 was 2% lower than the prior year, having been up 7% at the half-year stage.
Looking at the performance by division, the core Global Broking arm saw revenue fall 18% in the past quarter and for the nine months to end-September was down 6% year on year after a 2% rise in the first half.
The broker said this reflected “weaker trading volumes” in the past quarter against a strong third quarter in 2019 and followed the “unprecedented” strength of performance in the first half that was fuelled by volatility from the COVID-19 pandemic.
Energy & Commodities' revenue for the nine-month period was up 4%, having been 15% higher in the first half.
As for the smaller arms, such as Institutional Services, revenue was 28% higher, softening from 50% in the first half, with market conditions less supportive in the third quarter, while Data & Analytics was up 7% compared to 8% in the first half.
Chief executive Nicolas Breteau said: “Over a nine-month period of substantial economic dislocation, TP ICAP's business has been resilient. We have implemented a targeted cost efficiency programme that will provide further support to our earnings power in an operating environment that remains uncertain.”