TP ICAP (LSE:TCAP) PLC reported a slight revenue decline in the first half of 2021 as a result of what it said were “quieter markets” compared to the volatile trading seen in the first half of 2020 when the pandemic struck the financial sector.
In a trading update for the six months to June 30, the FTSE-250 broker said revenue for the period will be £936mln, down 5% year-on-year, driven by a 7% drop in global broking revenues caused by the “generally subdued” market environment compared to a year ago.
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Looking ahead, the company said that given the subdued trading conditions as well as “continuing uncertainty” caused by COVID-19, it expected full-year revenues to be “broadly in line with 2020”, although cautioned that the pound to dollar exchange rate is acting as a headwind against its revenues and operating margin.
"Our revenue performance reflects challenging trading conditions caused by the combination of very quiet secondary markets and the ongoing disruption from COVID-19. Against this market backdrop, we have focused on those areas that we can control: namely, executing on our strategy and managing costs,” TP ICAP (LSE:TCAP) chief executive Nicolas Breteau said in a statement.
"In terms of corporate development, this has been a busy and successful period. In February we completed the redomicile of our holding company from the UK to Jersey and realised tangible capital benefits as a result. We also completed the Liquidnet acquisition in March and the subsequent integration is successfully progressing at pace. We have continued to execute our organic strategy to electronify our business to improve margins over time, connect clients with liquidity more efficiently and diversify our revenue mix. In addition, we have continued to innovate, going live with a new fully automated Spot FX matching platform and announcing the launch of a pioneering wholesale trading platform for spot crypto-assets,” the CEO added.
The company’s shares dropped 4.1% to 191.8p in early deals on Tuesday.