TP ICAP: Revenue jumps to record
Inter-dealer broker TP ICAP has reported a ten per cent bump in revenue for the three months ended 30 September 2024.
Overall group revenue for the period was £557m. Rates, its largest and most profitable trading division, reported a 14 per cent jump in reported currency terms.
Liquidnet, the firm’s institutional investment network, reported a 28 per cent jump in revenue for the quarter. Its global broking revenue grew nine per cent.
Over the first nine months of the year, overall group revenue grew five per cent to £1.7bn.
TP ICAP considers breakup
Earlier this year, TP ICAP said it was considering a US listing for a minority stake in its data and analytics arm, Parameta Solutions, as it continued to consider spinning out part of the business.
The group has faced shareholder pressure to offload Parameta as part of calls to improve its share price. Parameta has outpaced TP ICAP’s flagship broking business in revenue growth.
Today, the group said it was “progressing strategic options” regarding Parameta, which might include the minority listing, but it said there was “no certainty” about either a listing or its location.
The firm added that Parameta’s revenue grew by nine per cent over the last quarter.
Peel Hunt analysts Stuart Duncan and Robert Sage noted the FTSE 250 firm reported “good growth across all divisions” for the nine months ended 30 September 2024.
“We remain of the view that the strategic options being considered for Parameta are a positive step to unlocking the undoubted value of this division,” said the Peel Hunt analysts.
“Our SOTP [sum-of-the-parts] valuation model continues to suggest that a target price of 280p could prove conservative.”
Although TP ICAP’s management warned that currency movement remains volatile and could impact its full-year profit, it said it was “comfortable” with market expectations and did not change guidance.
Shares in TP ICAP have returned 24.1 per cent, including dividends, so far this year.