TP Icap revenues drop against tough comparatives
Interdealer broker TP Icap posted a decline in first-quarter revenues on Wednesday against a tough comparative period underpinned by market volatility.
In the three months to the end of March 2021, revenue fell 9% from the same period a year ago on a constant currency basis to £483m. The company noted that in March 2020, revenues had been "exceptional" amid extremely volatile market conditions caused by the emergence of the Covid-19 pandemic.
However, when compared to the first quarter of 2019, revenues were up 6%.
Revenues in the global broking segment were down 10% to £312m, driven by market-wide lower client volumes across most asset classes. Equities revenues grew "significantly", meanwhile, benefiting from higher volumes and diversification from the LCM acquisition.
Energy & Commodities revenue declined 12% to £101m. TP Icap said that like in global broking, client activity was down across all asset classes compared to the equivalent quarter last year.
Revenue in Parameta Solutions grew 11% to £42m as the business continues to benefit from strategic initiatives to launch new and higher value products, expand distribution channels and deepen and diversify its client relationships, the company said.
Chief executive officer Nicolas Breteau said: "Following the exceptional revenue performance by the group in Q1 2020 driven by extreme volatility across all asset classes, these results represent a solid performance for group in the first quarter of 2021."
The company reiterated its full-year guidance of low single-digit revenue growth on a constant currency basis, excluding Liquidnet revenues.