TP ICAP PLC stands as an interdealer broker, and has recently published the financial results for its Group for Q3 2020. These results have made it clear that it saw a significant decline in its revenues regarding its global brokerage unit, as well as its business overall

Some Good; Some Bad

For the period ending on the 30th of September, 2020, TP ICAP has recorded a total quarterly revenue of £388 million. When viewed year-on-year, this signifies a decline of 6% at a constant currency rate. After exchange rate translations, however, this number spikes up to a 19% loss.

Even so, the global broking business of the Group was hit the most, witnessing a decline of 19% in its total revenue, now totaling only £260 million when compared to 2019’s £320 million. The institutional services unit managed to drop down by 16%, with the energy and commodity unit seeing a drop of 15%.

There are, however, a few noteworthy bright sides. One of the prominent ones is the increase in demand for the data and analytics services for TP ICAP, which saw a 9% increase and recorded a total of £36 million.

Revenue Seeing Marginal Decline

When considering the numbers of the past nine months, TP ICAP saw its revenue decline by a margin of 1%, going down to £1,375.  The only unit to see a decline in revenue for this period is the global broking business, having seen a revenue decline of 5%, measured on a constant currency basis.

In this same nine-month period, institutional services of the Group saw a yearly increase of 28%. Data and analytics units saw an increase of 8%, with energy and commodities enjoying a 5% increase, as well.

Always A Silver Lining

Nicolas Breteau stands as the CEO of TP ICAP, and gave a comment about the matter at large. Obviously, the man made a positive spin on everything, highlighting the significant amount of “economic dislocation” that occurred on a global scale this year. As such, he described the business of TP ICAP as a resilient one, highlighting cost efficiency programs he implemented in order to support the Group’s earning power. This is especially so, Breteau highlighted, amid an ever-uncertain operating environment.

As for its full-year guidance, the Group is proudly projecting a positive outcome. Back in October, the Group had already seen an increase within its broking business, further investing heavily in sales capabilities regarding its analytics and data business.

The Group is currently in the process of an acquisition, as well. TP IPAC is aiming to acquire Liquidnet Holdings and all its subsidiaries, having agreed to dock up an impressive $700 million for it.