ITG’s Financial Results Largely Mixed in Q1, Volumes Decline on Yearly Basis

ITG managed to see its GAAP earnings rise in Q1 2017 negating a loss in the year prior.

ITG (NYSE:ITG), an independent execution broker and financial technology provider, has reported its Q1 2017 earnings for the period ending March 31, 2017. The latest figures cap off a successful quarter, helping negate a downtrodden fiscal quarter in the year prior.

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In terms of Q1 2017, ITG disclosed a GAAP net income of $5.3 million, or $0.16 per diluted share. This was significantly higher when measured against Q1 2016, which saw a GAAP net loss of -$2.5 million, or $0.08 per diluted share. The latest quarter was noticeably more upbeat given the absence of an arbitration settlement and pre-tax charge of $2.8 million seen last year.

The group’s latest revenues were slightly lower during Q1 2017, coming in at $120.8 million, vs. $124.7 million in Q1 2016, or -3.1 percent year-over-year. By extension, expenses in Q1 2017 fell to $117.1 million in Q1 2017, rescinding from $122.7 million in Q1 2016, or -4.6 percent year-over-year.

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Looking at trading volumes, ITG’s average daily trading volumes in the US was reported at 151.0 million shares in Q1 2017. This is a decrease of -6.8 percent year-over-year from 162.0 million shares in Q1 2016. POSIT average daily US volume also dipped slightly to 63.0 million shares in Q1 2017, compared to a reading of 65.0 million shares in Q1 2016, or -3.1 percent year-over-year.

On an aggregated basis however, total average daily US volume traded through POSIT Alert was on the ascension to 15.0 million shares in Q1 2017, compared to 13.0 million shares in the Q1 2016, or 15.4 percent year-over-year.

The group’s European business fared little better, with an average daily value traded in POSIT at $1.1 billion in Q1 2017, falling -21.4 percent year-over-year from $1.4 billion in Q1 2016, including the effects of currency translation. This was offset by ITG’s total average daily value traded through POSIT Alert in Europe, which increased 77.0 percent compared to Q1 2016.

According to ITG President and Chief Executive Officer, Frank Troise, in a statement on the earnings: “We continue to build momentum in our international operations, with revenue growth in all three regions and record profitability in EMEA and Asia Pacific.”

“While the environment in the U.S. is challenging, we gained market share in the first quarter and are working to close the profitability gap through execution of our Strategic Operating Plan, which aims to enhance the value we deliver to clients through our core liquidity, execution, analytics and workflow technology solutions,” he added.

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