BGC Partners sees Forex revenues jump 48.9% YoY in Q3 2015


BGC Partners, Inc. (NASDAQ:BGCP), a brokerage company servicing the financial and real estate markets, has just reported its financial metrics for the third quarter of 2015, with Forex revenues registering a solid rise year-on-year.

The company said that Forex revenues for the three months to the end of September 2015 amounted to $83.7 million, up 48.9% from the result of $56.2 million registered in the corresponding period a year earlier.

The Forex revenues contributed to total revenues for distributable earnings from financial services of $417.7 million in the third quarter of 2015, up 59.9% from the result seen a year earlier.

The overall performance of BGC Partners was strong too, with overall revenues for distributable earnings totalling $700.9 million, up 55.8% year-on-year.

GAAP net income for fully diluted shares was $58.5 million, up massive 444.6% from the same period in 2014.

BGC Partners’ Board of Directors declared a quarterly cash dividend of $0.14 per share payable on December 4, 2015 to Class A and Class B common stockholders of record as of November 20, 2015.

The Board also authorized an increase of $203.5 million in the amount available under BGC’s stock repurchase program, bringing the total to $300 million.

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Management comments

“BGC’s third quarter post-tax distributable earnings grew by more than 30 percent year-over-year to $72.9 million, while our revenues increased by approximately 56 percent to $700.9 million,” said Howard W. Lutnick, Chairman and Chief Executive Officer of BGC.

“This marks our fifth consecutive quarter of record profits, and the fourth quarter in a row of highest-ever revenues. This strong performance was driven by the addition of GFI, the ongoing success of Newmark Grubb Knight Frank, our Real Estate Services company, and the continued strong double-digit percentage growth of our high margin fully electronic FENICS business. These e-businesses increased their revenues by more than 142 percent and their pre-tax distributable earnings by over 82 percent. BGC’s record results came despite the stronger U.S. dollar reducing our Financial Services revenues by more than $24 million during the third quarter of 2015.

“Our integration of GFI is progressing well. We remain on target to reduce our Financial Services expense run rate by at least $50 million a year by the first quarter of 2016, and we continue to expect at least $40 million in further annualized cost savings by the first quarter of 2017, for a total of at least $90 million in annual savings. We still plan to complete a full merger of BGC and GFI by the end of January, 2016.”

To view the full announcement from BGC Partners on its financial results for Q3 2015, click here.

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BGC Partners sees Forex revenues jump 48.9% YoY in Q3 2015

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