Tullett Prebon's Q3 revenues lifted by weaker pound

4th Nov 2016 07:30

(ShareCast News) - Tullett Prebon reported a 15% jump in third-quarter revenue as it got a boost from the weaker pound, with 60% of group revenues denominated in US dollars.For the quarter to the end of September, revenue rose to £216m from £188m in the same period last year, which was a 4% increase at constant exchange rates.In the nine months to the end of September, revenue was 7% higher, or 2% firmer at constant currency, at £647m.Tullett said it benefited from volatility associated with political uncertainty and speculation around the potential for further interest rate hikes.In the first nine months of the year, it benefited from its acquisitions in Energy and Commodities as the division increased revenue 10% year-on-year at constant exchange rates. Information Sales and RMS continued to see strong growth in the current quarter, with a 28% increase in revenue at constant exchange rates. In the first nine months, revenue was up 20% at constant exchange rates.As far as the proposed acquisition of ICAP's global hybrid voice broking and information businesses is concerned, Tullett said it is continuing to work with the company towards securing the outstanding regulatory approvals for completion of the transaction, including from the FCA.Chief executive officer John Phizackerley said: "This has been a satisfactory quarter, with a number of products and regions showing gains. While some trading conditions remain challenging, our strategy of diversification and cost control is proving effective."Numis said: "Overall, we believe this was a good quarter for the group that was made even better by favourable FX gains. We have consequently upgraded our 2016E/2017E/2018E adjusted earnings per share estimates by 9%/10%/10%, our target price moves to 470p from 450p and we reiterate our buy recommendation."At 0905 GMT, the shares were up 2.9% to 378.20p.