BGC Sees YoY Growth in Revenue Across All Asset Classes for Q3 2023, with FX Revenue Up 8.6%

BGC Partners, Inc.(BGC Partners), a leading global brokerage and fintech firm, has released its financial results for the third quarter ended September 30, 2023 (Q3 2023), reporting an overall year-on-year (YoY) increase across all asset classes. 

Total revenues for Q3 2023 were $482.7 million, up 15.9% from $416.6 million in Q3 2022. Brokerage revenues totaled $435.0 million, up 14.8% from $379.0 million in the same period last year. Revenue from data, network, and post-trade increased by 16.8% YoY to $27.8 million from $23.8 million. Interest and dividend income, fees from related parties, and other income amounted to $19.9 million, up 44.4% from $13.8 million in Q3 2022.

Specifically, rate revenues, which represent the largest portion of total revenues, increased 12.1% to $145.7 million from $130.0 million in Q3 2022. Compared to the same period last year, Forex revenues increased by 8.6% to $79.8 million from $73.5 million; credit revenues increased by 9.6% to $63.7 million from $58.2 million; energy and commodities revenues increased by 35.0% to $93.1 million from $69.0 million, and equity revenues increased by 8.8% to $52.7 million from $48.4 million. 

Fenics revenues rose by 18.7% to $125.4 million from $105.6 million in Q3 2022, driven by growth in electronic rates, credit products, data, network, and post-trade businesses.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) were $135.9 million, an increase of 27.0% compared to $107.0 million in Q3 2022.

Post-tax adjusted earnings were $94.1 million, an increase of 21.4% compared to $77.5 million in Q3 2022. Post-tax adjusted earnings per share were $0.19, an increase of 18.8% compared to $0.16 in last year's third quarter.

Howard W. Lutnick, Chairman and CEO of BGC Group, commented: "We had another outstanding quarter, generating revenue growth of 16%, reflecting increased volumes across all of our asset classes. 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.

"Fenics revenue improved by 19%, outperforming both its electronic trading platform and exchange peers. This was led by another record quarter for Fenics Growth Platforms, which grew by over 45%. Fenics UST, our electronic U.S. Treasury platform, reached a record 25% market share of the volume traded on U.S. Treasury exchange marketplaces during the year."