Global brokerage and financial technology company BGC Partners has released its metrics for the first quarter of 2023.
The company saw its quarterly revenue increase 5.2% on yearly basis to $532.9 million in Q1 2023, following the end of zero-interest rates. The brokerage highlighted that this is its second highest quarterly revenue, below the record revenues from the first quarter of 2020, when the Covid-19 pandemic caused market volatility and record highs in trading volumes.
The company said:
Both our Voice / Hybrid and Fenics businesses saw solid growth with revenue up across all asset classes. Fenics grew by 12.0 percent (14.4 percent in constant currency), generating a record $140.4 million in quarterly revenue, representing 26.3 percent of BGC’s total revenue.
The company also reported that the during the first three months of 2023, it recorded a slight increase in its consolidated revenue from forex trading, which rose by 0.2% to reach $80.2 million. Alternatively, this represents a 1% increase in constant currency, compared to the same period last year.
BGC Partners‘ profitability during the previous quarter was higher due to increased revenues and record quarterly productivity. Specifically, the brokerage company’s pre-tax and post-tax adjusted earnings rose by 10.2% and 12.1%, respectively. Moreover, its earnings before interest, taxes, depreciation, and amortization also increased by 7% when compared to the same period in the previous year.
The company’s financial report showed that revenues from energy and commodities experienced the most significant increase, rising 8.8% to $89.7 million from Q1 2022. In addition, revenues from credit trading saw an increase of 6.7% to reach $89.5 million. Meanwhile, revenues from rates and equities trading rose by 3.7% and 1.5%, respectively, compared to the same period last year.
BGC stated:
Total brokerage revenues improved by 4.2 percent (6.1 percent in constant currency) driven by higher trading volumes across all asset classes. 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. Additionally, our renewable energy and ship chartering businesses saw strong double-digit growth driving our Energy & Commodities business higher.
