BGC Partners, Inc. (NASDAQ:BGCP), a global brokerage and financial technology company, today reported its financial results for the quarter ended December 31, 2022.
Revenues for the three months to end-December 2022 amounted to $436.5 million, down 5.4% from the equivalent period a year earlier.
Net income fell steeply to $2.8 million, whereas operating income was $1.6 million.
Adjusted EBITDA also marked a sharp decline from a year earlier, decreasing to $124 million.
On February 24, 2023, BGC Partners’ Board of Directors declared a quarterly qualified cash dividend of $0.01 per share payable on March 31, 2023 to Class A and Class B common stockholders of record as of March 17, 2023. The ex-dividend date will be March 16, 2023.
Howard W. Lutnick, Chairman and CEO of BGC Partners, commented:
“Our business fundamentally changed beginning in December 2022. The return of meaningful interest rates and the reemergence of the strong positive correlation between issuance and increasing trading volumes are delivering broad-based growth across our business. BGC is now a growth company.
We believe these improving trading volumes will benefit those with strong technological capabilities and scale across the capital markets. Understanding the importance of technology, we made the investment in Fenics, which coupled with our global scale, will deliver strong growth, earnings, and cash flow.
Given our highly attractive trading multiple, our growth outlook and our highly valuable Fenics assets, we believe BGC offers the best value proposition in the industry.”
On November 15, 2022 BGC Partners, Inc. and BGC Holdings, along with certain other affiliated entities, entered into a Corporate Conversion Agreement in order to reorganize and simplify BGC’s organizational structure by converting from an Up-C to a “Full C-Corporation.” Upon completion of the Corporate Conversion Transactions, the stockholders of BGC Partners and the limited partners of BGC Holdings will participate in the economics of the BGC businesses through the same publicly traded corporate entity, BGC Group, Inc.
By simplifying the organizational structure, the Corporate Conversion Transactions are intended to improve transparency and reduce operational complexity.
The Corporate Conversion Agreement has been approved by BGC’s Board of Directors, at the unanimous recommendation of the independent Audit Committee and the independent Compensation Committee of the Board of Directors, sitting jointly.
In the first quarter of 2023, BGC received preliminary approvals from various U.S. and international regulatory authorities relating to the Corporate Conversion Transactions. BGC continues to seek regulatory approvals where required. Following receipt of such approvals, and subject to other customary closing conditions, including approval of BGC’s shareholders, which are expected to be satisfied, the Company expects to close the Corporate Conversion in the third quarter of 2023.
