TP ICAP's £1.13 Billion Revenue Milestone Triggers a 16% Stock Surge

<p>Shares of
the world's largest inter-dealer TP ICAP (LSE: <a href="https://www.financemagnates.com/tag/tp-icap/" target="_blank" rel="follow">TCAP</a>), soared at the start of today's
(Wednesday's) session by over 16%. This is investors' response to the
better-than-expected report for H1 2023, in which the company's
revenue stood at £1.13 billion. The company also launched a new share buyback
program valued at £30 million.</p><p>TP ICAP Reports Strong
Financials in H1 2023</p><p>According
to TP ICAP's interim report for the six months ending 30 June 2023, the overall
revenue increased 1%, following a strong H1 2022, where the revenue base
grew 7%. Adjusted EBIT rose 7%, settling at £163 million compared to £153
million in H1 2022. As a result, the basic earnings per share (EPS) stood at
£0.15, above analysts' expectations as in the same period
a year earlier it reported EPS at £0.128.</p><blockquote><p lang="en" dir="ltr">Earlier today, we announced our 2023 Interim Results.Nicolas Breteau, Group CEO, said: “Our focus on productivity, contribution and tight cost management generated an uplift in profit and EBIT margin."Read the 2023 Interim Results here: <a href="https://t.co/03blGZM5Cy">https://t.co/03blGZM5Cy</a> <a href="https://t.co/dbTmwPl8jB">pic.twitter.com/dbTmwPl8jB</a></p>— TP ICAP Group PLC (@TPICAPGroupPLC) <a href="https://twitter.com/TPICAPGroupPLC/status/1689161736878784512?ref_src=twsrc%5Etfw">August 9, 2023</a></blockquote><p>The results of the entire H1 confirm that in <a href="https://www.financemagnates.com/institutional-forex/tp-icap-sees-3-global-broking-revenue-growth-in-q1/" target="_blank" rel="follow">the first quarter</a>, when the group's total revenue was £606 million, it grew 2% year-on-year. In
addition, TP ICAP has announced an interim dividend of £0.048 per share, which
is an increase of 7% from the previous year, payable on 3 November 2023.</p><p>"Our
focus on productivity, contribution, and tight cost management uplifted profit
and EBIT margin. Energy &amp; Commodities delivered a strong performance as
energy markets normalized," Nicolas Breteau, the CEO of TP ICAP,
commented.</p><p>Even though
Global Broking revenue experienced a slight decrease of 1%, the Energy &amp; Commodities
division observed notable growth of 12%.</p><p>Regarding
the future outlook, the company remains optimistic about the upcoming months.
With central banks focusing on inflation control and normalization of
energy markets, TP ICAP's Global Broking and Energy &amp; Commodities divisions
are set to benefit.</p><p>Asset Purchase Program
Worth £30 Million</p><p>The company announced today that it is also launching a <a href="https://www.financemagnates.com/tag/share-buyback/" target="_blank" rel="follow">share buyback</a> program of ordinary
shares at 25 pence each, for a maximum of £30 million. The aim is to reduce the
company's capital and meet <a href="https://www.financemagnates.com/terms/o/obligations/">obligations</a> under employee share schemes. On top of that, TP ICAP released £100 million in cash to reduce its debt six months ahead of
schedule.</p><p>"The
buyback is being funded by a range of initiatives following the Jersey
re-domiciliation and cash generation. In commencing the buyback program, we
believe we have struck the appropriate balance between our continued and
substantial investment in our organic prospects," Breteau added.</p><p>In response
to strong financial results and information about the share buyback from the
market, TP ICAP reacted with a solid price increase on the London Stock
<a href="https://www.financemagnates.com/terms/e/exchange/">Exchange</a>. </p><p>At the
start of Wednesday's session, TP ICAP shares gained over 16% and tested the frontier of £180, which is its highest price since April. For the company, this is one of the strongest
intraday movements seen in the chart over the past three years.</p><p>In addition, Swissquote, another financial company, <a href="https://www.financemagnates.com/forex/swissquotes-net-revenue-and-client-assets-reach-record-heights-in-h1-2023/" target="_blank" rel="follow">published financial results for H1 2023 today</a>. The total operating profit reached CHF 124.87 million, growing by more than CHF 34.2 million compared to the same period a year earlier.</p>

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