TP ICAP shares ride high as volatile markets boost profit, revenues

(Reuters) - TP ICAP on Wednesday reported stronger-than-expected half-year profits, benefiting from heightened market volatility amid the Ukraine crisis, sending shares in the world's biggest inter-dealer broker up nearly 10%.

Trading platforms like TP ICAP, which match buyers and sellers, have seen a surge in client activity and volume this year as the Ukraine war and increasing risks of a global recession due to tightening monetary policies kept financial markets volatile.

The company's revenue rose in all of its asset classes, with energy and commodities revenue up 2%, while flagging slower growth in European Gas and Power on the back of a "risk off" trading environment.

TP ICAP's shares were up 9.7% to 145.8p as at 0754 GMT, and were the biggest gainers in the UK mid-cap index.

The company, which in March flagged lower growth in its newly acquired platform Liquidnet, now expects improved profitability from the business in the second half.

In March, TP ICAP said it is in active discussions with U.S. hedge fund Phase 2 Partners which asked TP ICAP to explore a sale.

The company's half-year revenue increased to 1.08 billion pounds ($1.30 billion), compared with 936 million pounds a year ago.

It also reported adjusted profit before tax of 116 million pounds for the six months ended June 30, compared with 88 million pounds a year ago.

Analysts had expected profit and revenue of 107 million pounds and 1.03 billion pounds, respectively, according to company compiled consensus poll.

Peer IG Group had also reported higher-than-expected annual profit to 477 million pounds in July.

TP ICAP, created from the merger of brokers Tullett Prebon and ICAP, proposed an interim dividend of 4.5 pence per share.

($1 = 0.8284 pounds)

(Reporting by Sinchita Mitra in Bengaluru; editing by Uttaresh.V and Jane Merriman)