Full Speed Ahead: Interactive Brokers Releases Q1 2014 Metrics, Net Revenue Soars 64% YoY

Interactive Brokers Group Inc. has announced the release of its Q1 financial metrics ending March 31, 2013, highlighted by soaring

interactive-brokersInteractive Brokers Group Inc. has announced the release of its Q1 financial metrics ending March 31, 2013, highlighted by soaring net revenues of $355 (64% YoY), according to an Interactive Brokers company statement.

The versatile firm specializing in equities, forex, options, and futures reported diluted earnings per share of $0.35 for Q1, compared with $0.06 for the same period in 2013, constituting a 483% increase YoY. In terms of non-comprehensive figures, the company revealed earnings per share of $0.34, relative to $0.14 at the end of Q1 2013, or a 143% gain YoY.

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Net Revenues and Income Before Income Taxes Explode

Interactive Brokers also reported soaring 2014 Q1 net revenues and income before income taxes at  $355 million and $218 million respectively. This compared to $216 million and $82 million at the end of Q1 2013, or a respective 64% and 166% gain YoY.

In addition, the following financial figures were released for the Q1 2014.

  • 61% pretax profit margin for this quarter, up from 38% YoY
  • 60% Electronic Brokerage pretax profit margin for this quarter
  • Customer equity growth of 38% YoY to $49.0 billion
  • Customer debits increased by 30% YoY to $14.4 billion
  • Customer accounts rose 16% YoY to 252,000
  • Total DARTs jumped 25% YoY to 582,000
  • Brokerage segment equity came in at $2.5 billion
  • Total equity was $5.2 billion.

Foreign Currency Diversification Rebounds in Q1 2014

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According to the release, the currency translation gain was $21 million during Q1 2014, which compares favorably to a $61 million loss incurred during Q1 2013. Based on a basket of 16 major currencies, Interactive Brokers’ currency diversification program grew its comprehensive earnings by $24 million, having seen the US dollar value of the GLOBAL increased by 0.4%.

Electronic Brokerage Also Reports Strong Gains

The large increases seen in the company’s other operations were also witnessed in Electronic Brokerage, with income before income taxes came in at $134 million (21% gain YoY). Moreover, commissions and execution fees also reported steadfast growth in the neighborhood of 14% YoY, fueled in large part by the augmented frequency of customer accounts and improved trading activity per customer.

Meanwhile, total daily average revenue trades (DARTS) were reported at 582,000 in Q1 2014, surging 25% YoY. In addition, cleared DARTs numbered 527,000 during Q1, up 25% YoY. The aforementioned growth in customer accounts was quantified at a growth of 16% YoY, now totaling 252,000 at the end of Q1 2014. This advance was also seen across the size of customer accounts, which grew to $195,000 in equity per cleared customer.

Market Making And Share Prices In Focus

Market Making income was also a steady riser in Q1 2014, with income before income taxes coming in at $88 million, or 203% higher YoY – absent the presence of currency translation, Market Making yielded $67 million in pretax income during Q1 2014.

In terms of shareholders, Interactive Brokers (IBKR:NASDAQ) declared a quarterly dividend of $0.10 per share. The dividend is payable on June 13, 2014 to shareholders of record as of May 30, 2014. According to Forex Magnates research, the stock presently trades at $21.56 per share at the time of writing, surging to $22.00 (up 2.02%) in after hours trading on news of the release. The stock is well positioned with a P/E ratio of 29.18 and is well below its 52-week high of $25.03.

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