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