BGC Group's Q3 Revenue Surges Amid Year-to-Date Concerns

<p>BGC Group has
reported a significant increase in revenue, driven by strong performance across
all asset classes for the third quarter of 2023. The brokerage and financial
technology provider reported an increase in most major indicators on a
quarterly basis, but for the first nine months of the year, it recorded a
significant contraction in net profit compared to 2022.</p><p>BGC Group Reports Robust
Q3 2023 Financial Performance</p><p>BGC's
revenue for the third quarter <a href="https://www.financemagnates.com/institutional-forex/bgc-partners-rebrands-as-bgc-group-converts-corporate-structure/" target="_blank" rel="follow">rose by 15.9% to $482.7 million</a>. This growth was
not confined to a single region; the Americas and EMEA saw revenue increases of
19.0% and 16.9%, respectively, while Asia Pacific revenues rose by 5.9%. Rates
and Credit revenues improved by 12.1% and 9.6%, respectively, while FX revenues
were 8.6% higher. Energy and Commodities revenues grew by 35.0%.</p><p>The
company's pre-tax adjusted earnings grew by 23.1% to $101.9 million, with
margins improving by 125 basis points to 21.1%. This marks the twelfth
consecutive quarter of year-over-year (YoY) margin expansion. Post-tax adjusted
earnings increased by 21.4% to $94.1 million, or $0.19 per share, an 18.8%
improvement. Adjusted EBITDA also saw a significant rise, improving by 27.0% YoY
to $135.9 million.</p><p>“We had
another outstanding quarter, generating revenue growth of 16 percent,
reflecting increased volumes across all of our asset classes,” Howard W.
Lutnick, the Chairman and CEO of <a href="https://www.financemagnates.com/tag/bgc-partners/" target="_blank" rel="follow">BGC Group</a>, commented. “BGC is extraordinarily
well positioned to benefit from the return of interest rates, which we expect
to drive our trading volumes, revenue and profitability higher for the
foreseeable future.”</p><p>Fenics,
BGC's electronic <a href="https://www.financemagnates.com/terms/t/trading-platform/">trading platform</a>, also experienced a robust growth. It saw a
19% increase in revenue, led by a record quarter for Fenics Growth Platforms,
which grew by over 45%. Fenics UST, the company's electronic US Treasury
platform, reached a record 25% market share of the volume traded on US Treasury
<a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> marketplaces during the year.</p><p>HigherYear-to-DateCostsImpactedNetProfit</p><p>Upon
examining BGC's report, we notice that revenues also grew for the first nine
months of 2023, and along with them, total expenses significantly increased as
well. As a result, the company's net profit from January to the end of
September stood at $17.5 million, compared to $55.26 million reported in the
same period the previous year. The reason could be, among other things, the second quarter, in which despite the increase in revenue, <a href="https://www.financemagnates.com/institutional-forex/bgc-reports-losses-in-q2-despite-revenue-growth/" target="_blank" rel="follow">the company did not achieve profitability</a>.</p><p>For the
fourth quarter of 2023, BGC anticipates revenues to be between $450 and $500
million and pre-tax adjusted earnings to range from $88 to $108 million.
Additionally, a quarterly cash dividend of $0.01 per share has been declared,
payable on 1 December 2023.</p><p>In July, the companyrevealed that it has successfully transitioned to a full C-Corporation. Following this change, <a href="https://www.financemagnates.com/institutional-forex/bgc-reports-losses-in-q2-despite-revenue-growth/" target="_blank" rel="follow">the company has rebranded itself as BGC Group</a>, Inc. and has also modified its Nasdaq ticker symbol from BGCP'to BGC.</p>

This article was written by Damian Chmiel at www.financemagnates.com.