BGC Group, Inc. (NASDAQ:BGC) today announced its financial results for the quarter ended March 31, 2024.
BGC’s revenue increased 8.6% to $578.6 million, reflecting broad-based growth across all geographies and growth in the Energy, Commodities & Shipping, Rates and FX businesses.
Total brokerage revenue increased 7.3%, driven by strong performance in Energy, Commodities & Shipping, Pricing and FX.
Foreign exchange revenue improved 4.8 percent to $84.0 million, driven by higher volumes in emerging market currencies and options.
BGC’s profitability increased across all earnings metrics during the quarter, including GAAP net earnings on fully diluted shares, which improved 92.2%.
BGC’s adjusted pretax profit rose 8.6 percent to $135.4 million with a margin of 23.4 percent, the fourteenth consecutive quarter of year-over-year margin expansion.
Adjusted profit after tax rose 6.6% to $123.2 million. Adjusted earnings per share after taxes improved 8.7% to $0.25 per share.
Adjusted EBITDA improved 37.9% to $208.4 million for the first quarter.
On April 25, 2024, BGC announced that Bank of America, Barclays, Citadel Securities, Citi, Goldman Sachs, JP Morgan, Jump Trading Group, Morgan Stanley, Tower Research Capital and Wells Fargo became minority owners of FMX.
Collectively, the group of investors contributed $172 million in exchange for a 25.75 percent stake in FMX at a post-money equity valuation of $667 million. The investor group also received an additional 10.3 percent equity ownership subject to increasing trading volume and achieving certain volume targets across the FMX ecosystem.
Backed by 10 of the world’s largest investment banks, FCMs and market makers, the FMX Futures Exchange is expected to launch in September 2024.
Howard W. Lutnick, President and CEO:
“This is a great time for BGC. Today, we reported record first-quarter revenue and adjusted earnings, and last week, we completed the FMX transaction and announced our strategic partners.
These 10 major financial institutions joined us in building FMX, investing $172 million at a post-money equity valuation of $667 million. Recognizing our success in the US Treasury and foreign exchange markets, their investment further validates both our technology and our vision to reshape the US interest rate markets. This outstanding team of partners brings tremendous value to FMX, well beyond this initial valuation.”