Virtu Financial reports a 22.6% increase in quarterly revenue
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Virtu Financial has released its results for the first three months of 2023. The company reported revenues of $610.5 million during the period, a 22.6% increase compared to the previous quarter. The revenues dropped 12.9% compared to the same quarter last year.
Virtu Financial’s revenues jumped 22.6% in Q1
The electronic market maker reported a net trading income of $411.5 million in the first quarter of 2023. The firm’s adjusted net trading income was $373.1 million, while the adjusted EBITDA was $207.5 million. The adjusted EBITDA margin during the period was 55.6%.
During the quarter, the company expanded its share buyback program by repurchasing $75.6 million worth of shares. The net trading revenue jumped by 31.3% in Q1 2023 compared to Q4 2022. The daily average net trading income increased by 38%, with 53% coming from market-making adjusted net trading income per day.
As of the end of March, the company had $809.2 million in cash, cash equivalents, and restricted cash. The long-term debt outstanding was 1,808.3 million. The Board of Directors at the company also declared a quarterly cash dividend of $0.24 per share.
Financial results depict a poor year-over-year performance
The quarterly results reported by the company in Q1 2023 were better than in Q4 2022. However, the numbers were not the best when compared to Q1 2022. The recent results show a notable decline in total revenue and net trading income every year.
The company’s total revenue in Q1 2022 was $701.3 million because of improved results in the Market Making division, which came in at $545.56 million. The number was slightly higher than the $489 million reported last quarter.
The adjusted net trading income was over $505 million a year earlier, nearly double the results reported recently. The final net income was around $200 million more than the $110 million reported in the recent quarter. The trading income also dropped by 21% YoY, while the total revenues dropped by 12.9%.
Virtu’s results for the fourth quarter and 2022 also depicted lower revenues while the net trading income dropped. In Q4 2022, the company reported a 43.6% YoY drop in total revenues from $485.6 million to $274.1 million. The revenues also declined from $561 million in Q3.
The poor revenue performance also affected the net income, which came into $39.6 million in the last quarter of 2022, then the $186 million reported in the same quarter during the previous year. The net income for the third quarter was $79.9 million.
The company also filed a lawsuit against the US Securities and Exchange Commission (SEC) based on the Freedom of Information Act (FOIA). This lawsuit compels the federal regulator to offer information about the rulemaking process and how interested parties interact with the SEC Chair, Gary Gensler. The SEC oversees the securities market in the US.
