The US-based online brokerage company, BGC Group has released its financial report for the second quarter of the year, disclosing mixed performance. Although the group's revenue increased during the period, its net income declined.
BGC reported an increase of 13% in revenue to USD $493 million from USD $435 million reported in the second quarter of last year. Similarly, the company's EBITDA increased 18% to USD $135 million from USD $114 million in the corresponding period of 2022.
BGC Reports Losses in Q2
However, the group reported a net loss of USD $19 million in the quarter, from a profit of USD $14 million in the same period of last year. Nonetheless, BGC has declared a quarterly cash dividend of USD $0.01 per share, payable on September 5.
BGC saw its total expenses increase 28% to USD $525 million in the second quarter of 2023 compared to USD $408 million in the same period of last year. The bulk of the expenses was from compensation and benefits to employees.
Commenting about the financial report, Howard Lutnick, the Chairman and CEO of BGC Group, said: "We generated strong revenue growth of over 13 percent as our business continued to improve following the end of manufactured zero interest rates. BGC's outperformance reflects the breadth and scale of our global platform."
BGC's Q3 Outlook
Additionally, BGC released its projections for the third quarter of the year in the financial report. The company is projecting revenue between USD $445-500 million in the period, which compares to USD $416 million in the corresponding quarter of last year.
Similarly, the group is projecting pre-tax adjusted earnings of between USD $87-110 million in the next quarter, which compares to USD $83 million reported in the third quarter of last year.
Formerly known as BGC Partners, the brokerage company completed its corporate conversion to a full C-Corporation, a type of legal entity that is separate from its owners. Following the transition, the company rebranded to BGC Group and updated its Nasdaq ticker symbol from 'BGCP' to 'BGC'.
Following the transition, BGC expects to attract a broader and more diverse investor base. The company and its affiliated entities offer a wide range of financial and brokerage products, including equities and futures. Besides that, the company offers brokerage, clearing , and back-office services for financial and non-financial institutions.
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