ICAP’s EBS registers 2% Y/Y rise in FY 2016 revenues

Markets operator and provider of post trade risk and information services ICAP plc (LON:IAP) has earlier today published its financial report for the year ended March 31, 2016, with electronic trading platform EBS seeing a small rise in revenues.

For the year ended 31 March 2016, EBS saw revenue increase by 2% on a reported basis to £126 million (2014/15: £124 million), whereas in constant currencies the revenue decreased by 5%. In the face of episodic volatility in G3 currency pairs and high volatility in emerging markets, average daily volume decreased by 9% to $90 billion as higher trading activity following central bank actions in the previous year was not repeated.

Let’s also mention something about BrokerTec. For the year ended March 31, 2016, revenue decreased by 4% on a constant currency basis and increased by 2% on a reported basis to £130 million (2014/15: £128 million). These results reflect a 3% increase in US Treasury average daily volume to $168 billion, a 3% decrease in US repo to $212 billion and a 3% drop in European repo to €175 billion.

Below are the performance highlights for the year to March 31, 2016:

  • The transaction with Tullett Prebon remains on track.
  • Group revenue for the year was £1,201 million, 6% below the prior year. On a constant currency basis, revenue from Post Trade Risk and Information was up 5% which was offset by decreases of 4% in Electronic Markets and 5% in Global Broking (excluding closed desks).
  • ICAP invested £96 million in new product initiatives.
  • Trading profit before tax amounted to £203 million (2014/15: £229 million), reflecting a £7 million foreign exchange loss.
  • Trading EPS (basic) fell to 24.6p (2014/15: 28.7p).
  • The directors recommend a final dividend of 15.4p per share which will lead to a full-year dividend of 22p per share (2014/15: 22.0p per share). If approved, the final dividend will be paid on 22 July 2016 to shareholders on the register at the close of business on 1 July 2016. The shares will be quoted ex-dividend from 30 June 2016.


You can view the full report from ICAP by clicking here.

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