Interactive Brokers Group Inc. Reports Q1 Financial Results

IBKR saw higher YoY growth compared to the loss from 2015 swiss franc event.

Shortly after the close of trading in the US capital markets today, Interactive Brokers Group, Inc. listed on the NASDAQ GS market under ticker IBKR,  announced its first quarter financial results for 2016, and just reported net revenues of $489 million, according to an official company press release.

The amount of income before income taxes totaled $337m for Q1 2016 for Interactive Brokers, and was up year-over-year (YoY) from net revenues of $172m and the loss before income taxes of $111m that had been reported for Q1 2015 related to the Swiss franc anomaly that caused a $121m loss for the company.

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Finance Magnates recently covered the company’s March trading volumes results, as well as February, and the first month of the year. During a conference call with the company’s CEO Thomas Peterffy, following the press release, he mentioned that a number of new records were reached for Q1 reported period.

In response to questions regarding the company’s Covestor product for robo-advisory, Mr. Peterffy explained “Covestor is going somewhat slower than we expected, I think that our marketplace is taking off fairly well, but Covestor – so far – is a disappointment, but we are going to stick with it and it always takes a long time to get anything going but eventually we’ve never failed at anything so we expect to succeed here too.”

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Diluted earnings per share (EPS) on a comprehensive basis were reported at $0.60 cents per share for the quarter ended March 31, 2016, and reflecting a year-over-year increase from a loss of $0.24 cents per share during Q1 2015.

Business highlights, according to the company’s press release, included a pretax profit margin of 68% for the company’s Electronic Brokerage division and was up from 18% YoY, and a 34% Market Making pretax profit margin during Q1 2016 and down from 40% over the same period.

During Q1 2016, customer equity grew 15% from to $70.1 billion, when compared YoY,  while customer debits decreased by 13% to $15.0 billion when compared to Q1 2015 over the same period.

In addition, customer accounts increased 17% from the year-ago quarter to 345 thousand, while total daily average revenue trades (DARTs) increased 15% YoY to 748,000, and as brokerage segment equity totaled $3.7b and with total equity reaching $5.7 during Q1 2016.

Shares of IBKR traded up nearly 4% in the after-hours session, following the reported financials.

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