LONDON (Reuters) - TP ICAP TCAPI.L, the world's biggest inter-dealer broker, on Monday said global revenue fell 19% in the third quarter and detailed plans of a restructuring which will save 35 million pounds annually from the end of next year.
Revenues totalled 1.38 billion pounds in the first nine months of 2020, down 2% on the same period in 2019, with trading volumes tailing off in the third quarter compared to the bumper levels seen in March.
“While transaction volumes were particularly subdued in the third quarter, we started to see increased activity in our broking businesses during October,” the company said in a statement.
TP ICAP expects to end the year with a “double-digit” growth rate and full-year revenues in line with 2019 on a constant currency basis.
The company said it has implemented a “targeted reorganisation” of its broking businesses to save 35 million pounds annually by the end of 2021, saying it will give more details when it holds a capital markets day on Dec. 1.
The company announced last month it was buying electronic trading network Liquidnet for $575 to $700 million, and will update the market on Dec 1.
“Over a nine-month period of substantial economic dislocation, TP ICAP’s business has been resilient,” said TP ICAP CEO Nicolas Breteau.
“We have implemented a targeted cost efficiency programme that will provide further support to our earnings power in an operating environment that remains uncertain.”
Reporting by Huw Jones; Editing by Rachel Armstrong
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