TP ICAP PLC (LSE:TCAP) has said it traded in line with the board’s expectations in the first nine months of 2022 after it benefited from “favourable” market conditions in its global broking operations.
Total group revenue in the nine-month period to 30 September 2022 was £1.58bn, a rise of 10% year-on-year at constant currencies. In the third quarter, group revenue rose by 5% to £508mln.
The FTSE 250 company highlighted a boost from the strength of the dollar, with around 60% of group revenue and 40% of costs being dollar-denominated.
Global broking revenue was up 9% in the nine-month period, with all asset classes generating high single-digit to double-digit growth.
In energy and commodities (E&C), revenue declined by 3%, in line with exchange volumes. Oil, the company’s largest asset class in E&C, delivered low single-digit growth.
The company noted that the European gas and power market is challenging, saying “significant price rises and increased exchange margin requirements resulted in liquidity contracting and low levels of market activity”.
Agency execution revenue, including Liquidnet - acquired in 2021 - was up 34% in the first nine months. Liquidnet revenue, on a proforma basis, declined by 9%.