Virtu Financials Reports A Plunge In Revenue And Net Trading Income
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Virtu Financial has reported a drop in revenues and net trading income during the second quarter of the year. The New York-based electronic market maker has posted financial results that depict a negative performance that mimics that posted by other brokerage platforms.
Virtu Financials reports a decline in revenue and net trading income
The total revenues that were posted by the company during the period were $506.9 million, representing a 17% drop quarter-over-quarter. The figure also represented a 16.2% decline compared to the second quarter of 2022.
Virtu Financials is a financial platform that mainly deals in market-making and execution services. During the last quarter, the brokerage platform posted a net trading income of $306.2 million, which was a 26% drop compared to the previous quarter. During the first quarter, Virtu Financials posted a net trading income of $411.5 million.
The income reported by the company also dropped by 23% compared to the $395.9 million that was reported during the same period last year. The financial report by the company also shows that the net trading income has dropped by 22% to reach $278.7 million during the previous quarter. The figure marked a drop from the $357.4 million that was reported during the second quarter of 2022.
During the quarter, Virtu Financials saw the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reach $122 million. On the other hand, the earnings also reported a 43% decline compared to the $209.3 million that was reported during the same quarter in 2022.
The statement that was posted by the company also said that the Board of Directors at the company reported that the quarterly cash dividend came to $0.24 per share. The company had also reported the same dividend during the previous quarter.
Virtu Financial also reported $0.16 in basic and diluted earnings during the previous quarter. The earnings dropped by 79% from the $0.78 reported during the second quarter of 2022. By the end of the second quarter, Virtu posted $745.8 million worth of cash, cash equivalents, and restricted cash. The total long-term debt outstanding reached an aggregate principal amount of $1,806.3 million.
Virtu Financial posts negative 2022 financial results
The plunge in metrics seen during the second quarter of 2023 mirrors what was reported by the company in 2022. During the 2022 financial year, the company reported a drop in revenues and net trading income.
The total revenue posted by the company during the second quarter dropped by 15.9% to $2.4 billion. The net profit reported by the firm during the period also came to $468.3 million in 2022, marking a 43% drop from the $827.2 million that was posted in 2021.
XTX Markets also saw a massive increase in the net profits generated by entities based in the UK during the 2022 financial year. The profits generated from the subsidiaries of the company also increased from £667 million in 2021 to reach £1.095 billion in 2022.
