November 2, 2018 / 7:50 AM / 16 days ago

UPDATE 1-TP ICAP revenue inches higher, sticks with guidance

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Nov 2 (Reuters) - Revenue at interdealer broker TP ICAP inched 1 percent higher in the four months to the end of October but was down by a similar amount in the first 10 months of 2018, reflecting what it said were “mixed” market conditions.

The firm, the product of a merger two years ago between London’s two big financial market brokers Tullett Prebon and ICAP, reiterated its guidance from July that earnings per share would be slightly below the bottom end of a range of 34.9 pence to 39.0 pence per share.

Separately, TP ICAP confirmed earlier reports it was buying Houston, Texas-based energy and commodities brokerage firm Axiom for $15.1 million in cash as it looks to expand its footprint as an energy broker.

At constant exchange rates, eliminating the impact of a volatile year for sterling, revenue rose 3 percent in the first 10 months of 2018, boosted by a double-digit jump in revenue from its Data & Analytics arm, the company said.

TP ICAP has been hit by higher costs stemming from Brexit, the European Union’s MiFID II regulatory reform, and IT security, leading it to fire its top boss John Phizackerley earlier this year and caution on annual profit.

Revenue rose to 568 million pounds ($738.63 million), for the four months ended Oct. 31, from 562 million pounds a year earlier.

“Today’s trading update demonstrates that TP ICAP is well placed to grow in mixed market conditions, characterised by periodic volatility that we saw in October following the US Federal Reserve’s rates decision,” Nicolas Breteau, TP ICAP’s chief executive officer, said in a statement on Friday.

Year-to-date revenue in its Energy & Commodities’ division was 2 percent lower, with the company saying market conditions there remained challenging across many of its products.

$1 = 0.7690 pounds Reporting by Muvija M in Bengaluru; editing by Patrick Graham

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