BGC Group Inc (BGC) Reports Q3 2023 Earnings with 16% Revenue Growth
BGC Group Inc (NASDAQ:BGC) reported a 16% revenue growth for Q3 2023, driven by increased volumes across all asset classes.
Fenics revenue improved by 19%, outperforming both its electronic trading platform and exchange peers.
GAAP net income for fully diluted shares increased by 116.9% to $16.0 million.
Adjusted EBITDA improved by 27.0% to $135.9 million for the third quarter.
On October 30, 2023, BGC Group Inc (NASDAQ:BGC), a leading global brokerage and financial technology company, released its financial results for the quarter ended September 30, 2023. The company reported an outstanding quarter with a revenue growth of 16 percent, reflecting increased volumes across all of its asset classes.
Financial Highlights
According to the earnings report, BGC's revenue grew by 15.9 percent to $482.7 million, improving across every geography in the third quarter. This growth was driven by the Americas and EMEA which improved by 19.0 percent and 16.9 percent, respectively, with Asia Pacific revenues up 5.9 percent. The company generated strong double-digit growth across all earnings metrics during the quarter, driven by higher revenues across Fenics and Voice / Hybrid, along with record front office productivity.
Performance of Key Segments
Fenics, BGC's electronic trading platform, saw its revenue improve by 19 percent, 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 percent. Fenics UST, BGC's electronic U.S. Treasury platform, reached a record 25 percent market share of the volume traded on U.S. Treasury exchange marketplaces during the year.
Future Outlook
Howard W. Lutnick, Chairman and CEO of BGC Group, commented on the company's performance, stating, "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. We continue to make significant progress with FMX. We look forward to communicating additional updates and details during the quarter."
Dividend Information
On October 27, 2023, BGCs Board of Directors declared a quarterly qualified cash dividend of $0.01 per share payable on December 1, 2023 to Class A and Class B common stockholders of record as of November 17, 2023.
Explore the complete 8-K earnings release (here) from BGC Group Inc for further details.
This article first appeared on GuruFocus.
