BGC Partners, a major financial
technology and brokerage firm, released its first quarter 2023 metrics on
Wednesday, reporting a marginal increase in its consolidated revenue from forex
trading. The revenue rose 0.2% to $80.2 million (or 1% in constant
currency), compared to the first quarter of 2022. FX Generates Smallest Revenue
GrowthThe revenue boost was the least
among all asset classes traded on BGC’s platforms. The first quarter revenue
follows a marginal decrease of 0.5% year-over-year in BGC’s revenue from forex
trading in 2022. The figure came in at $299.7 million at the time. According to the financial
report, revenues from energy and commodities generated the biggest increase,
rising 8.8% from Q1 2022 to $89.7 million. This is followed by revenues from
credit trading which rose 6.7% to $89.5 million. Furthermore, revenues from rates
and equities trading jumped 3.7% and 1.5%, respectively, compared to the prior period last year.“Total brokerage revenues
improved by 4.2 percent (6.1 percent in constant currency) driven by higher
trading volumes across all asset classes,” BGC explained. “The combination of
meaningful interest rates and improving trading conditions led to higher client
activity across Rates and Credit, driven by shorter-dated interest rate
products and strong credit volumes.”BGC’s Second Highest
Quarterly RevenueMeanwhile, revenues from all of
the Nasdaq-listed company’s businesses shot up 5.2% to $532.9 million in Q1 2023,
driven by higher trading volumes following the end of zero-interest rates. The figure is BGC’s second-highest quarterly revenue as the number fails to beat record revenues posted by the firm during the first quarter of
2020 when the COVID-19 pandemic drove trading volumes to record
highs.“Both our Voice / Hybrid and
Fenics businesses saw solid growth with revenue up across all asset classes.
Fenics grew by 12.0% (14.4% in constant currency), generating a
record $140.4 million in quarterly revenue, representing 26.3% of BGC’s
total revenue,” BGC explained.Also, the fintech company’s
profitability was higher during the just-ended quarter, pushed by higher
revenues and record quarterly productivity. In detail, the brokerage company’s
pre-tax and post-tax adjusted earnings rose 10.2% and 12.1%, respectively.
Additionally, its earnings before interest, taxes, depreciation, and
amortization increased 7% compared to the prior year period.FCA on whistleblower; Equinix’s Q1 results; read today’s news nuggets here.
This article was written by Solomon Oladipupo at www.financemagnates.com.
