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.


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.

Read Also: