TP ICAP Group PLC has released its trading update for the first quarter of 2024, revealing a mixed performance across its divisions. The Group's total revenue for Q1 2024 stood at £570 million, marking a 3% decline in constant currency terms compared to the same period last year.

However, the company experienced a strong rebound in April, resulting in a 3% increase in total revenue for the first four months of 2024.

TP ICAP Reports Mixed Q1 2024 Performance amid Market Volatility

The Global Broking division saw a 7% revenue decline for Q1 2024, following near-record revenues in March 2023 due to the collapse of several US banks. Despite this, the division recorded strong double-digit growth in April, indicating a significant recovery.

The Energy & Commodities (E&C) division reported an 8% increase in revenue for Q1 2024, “benefiting from buoyant market conditions.” Over the past 12 months, E&C revenue has surged by 20%.

Parameta Solutions, TP ICAP's OTC data provider, reported a 12% revenue increase in Q1 2024, fueled by sustained demand, new client acquisitions, and an emphasis on direct distribution.

“We continue to explore options to unlock the value of Parameta Solutions for shareholders, including a potential IPO of a minority stake in the business,” TP ICAP commented in the statement.

#TCAP TP ICAP Total group revenue in Q1 of £570m which is down 3% vs record performance in Q1 23. Parameta Solutions performing well and TCAP continue to explore options to unlock the value of Parameta Solutions, including a potential IPO of a minority stake in the business

— The Dude (@Redpanda73) May 15, 2024

This aligns with the mixed results for 2023, where the company reported a net statutory profit of £74 million, while the adjusted figure was £227 million. Although the net statutory profit declined by 28.1%, the adjusted profit increased by 17%. Additionally, the company allocated £30 million to its buyback program.

Liquidnet Revenue Down 4%

TP ICAP's operations also include Liquidnet, a private trading operator that became part of the Group following an acquisition over three years ago.

The Cash Equities business, which is the largest segment of the division, experienced a 7% growth in Q1 2024, continuing the momentum from late 2023. Despite this growth, Agency Execution saw a decline in revenue following the record highs of March 2023, fueled by favorable market conditions also benefiting Global Broking.

Consequently, total Liquidnet revenue for the quarter decreased by 4% and 8% in constant currency.

As Finance Magnates informed, Liquidnet recently unveiled its SuperBlock initiative. The first offering under this initiative, SuperBlock Matching, enables traders to easily signal and participate in exceptionally large or illiquid block trades.