BGC Reports Losses in Q2 despite Revenue Growth

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The US-based online brokerage company BGC Group has released
its financial report for the second quarter of the year, disclosing a mixed
performance. Although the group's revenue increased during the period, its net
income declined.</p><p><a href="https://www.financemagnates.com/tag/bgc-partners/" target="_blank" rel="follow">BGC</a> reported a 13% increase in revenue to USD $493 million from USD $435 million reported in the second quarter of last year. Similarly, the company's EBITDA increased by 18% to USD $135 million from USD $114 million in the corresponding period of 2022.</p><p>BGC Reports Losses in Q2</p><p>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.</p><p>BGC saw its total
expenses increase 28% to USD $525 million in the second quarter compared to USD $408 million in the same period of last year. The bulk of the expenses was from
compensation and benefits to employees.</p><p>Commenting about the
financial report, Howard Lutnick, 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."</p><p>BGC's Q3 Outlook</p><p>Additionally, BGC released its projections for the third quarter of the year in the financial report. The company is
projecting revenue of between USD $445-500 million in the period, which
compares to USD $416 million in the <a href="https://www.financemagnates.com/institutional-forex/bgc-partners-sees-marginal-increase-in-fx-revenue-in-q1/" target="_blank" rel="follow">corresponding quarter of last year</a>.</p><p>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.</p><p>Formerly known as BGC
Partners, the brokerage company <a href="https://www.financemagnates.com/institutional-forex/bgc-partners-rebrands-as-bgc-group-and-transforms-to-c-corp/" target="_blank" rel="follow">completed
its corporate conversion</a> 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'.</p><p>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 <a href="https://www.financemagnates.com/terms/e/equities/">equities</a> and futures. Besides that, the
company offers brokerage, <a href="https://www.financemagnates.com/terms/c/clearing/">clearing</a>, and back-office services for financial and
non-financial institutions.</p><p>IG's share buyback; new features on Fortex; <a href="https://www.financemagnates.com/forex/news-nuggets-2-august-igs-share-buyback-new-features-on-fortex/" target="_blank">read today's news nuggets</a>.</p>

This article was written by Jared Kirui at www.financemagnates.com.