BGC Partners (BGCP) Updates Q4 Outlook; Includes GFI Group Consolidation

BGC Partners, Inc. (NASDAQ: BGCP) announced that it has updated its outlook for the quarter ending December 31, 2015. The results will include the consolidation of those for BGC's majority-owned division, GFI Group Inc. (OTC: GFIG) ("GFI Group" or "GFI"), a leading intermediary and provider of trading technologies and support services to the global OTC and listed markets.

BGC expects its quarterly revenues for distributable earnings to be above the low-end of the range of its previously stated guidance and for its pre-tax distributable earnings to be towards the mid-point. This updated outlook reflects the addition of GFI and strong double-digit year-on-year growth for the Company's Real Estate Services business. BGC's previous outlook had assumed a full quarter of revenues and profits from Trayport, which was sold on December 11, 2015. BGC's third quarter 2015 outlook was originally published in a press release dated October 28, 2015, and was as follows:

Original Fourth Quarter 2015 Outlook Compared with Fourth Quarter 2014 Results

• BGC anticipated distributable earnings revenues to increase by between approximately 33 percent and 41 percent and to be between $685 million to $725 million, compared with $515.5 million.
• The Company's outlook for revenues would have been approximately $16 million higher but for the relative strengthening of the U.S. dollar compared with a year earlier.
• BGC expected pre-tax distributable earnings to increase by between approximately 17 percent and 38 percent and to be in the range of $85 million to $100 million, versus $72.6 million.
• BGC anticipated its effective tax rate for distributable earnings to remain approximately 15 percent.

The Company expects to pay a net tax rate of 10 percent or less with respect to the Trayport transaction, compared with the previous estimate of 15 percent or less. The one-time gain will be reflected in BGC's consolidated results under U.S. generally accepted accounting principles (or "GAAP"), but will be excluded from the Company's results for distributable earnings.

With respect to BGC's consolidated quarterly results, approximately 33 percent of GFI's post-tax distributable earnings are expected to be attributable to non-controlling interest in subsidiaries, while the remaining approximately 67 percent are expected to be attributable to BGC's fully diluted shareholders.

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