Virtu Financial Ends Q4 2020 with $198 Million in Net Income

It earned $1.12 billion for the whole year, recovering from a loss of $103.7 million in 2019.

New York-based Virtu Financial Inc. (NASDAQ: VIRT), an electronic market maker, reported excellent fourth-quarter financial results for 2020 with a 69.3 percent yearly revenue jump to $676.7 million. The company credited the extended impact of volatility in the market triggered by the uncertainties of the pandemic for the impressive figures.

The trading income for the quarter came in at $505.5 million, compared to last year’s $228.7 million. That was a year-on-year gain of 121 percent. On an adjusted basis this number remained $455.9 million, which is 77.3 percent higher than last year.

The quarterly net income stood at $197.7 million while the company reported a net loss of $29.4 million in the corresponding quarter of the previous year, mostly due to ITG acquisition costs. The normalized adjusted net income jumped 355.4 percent to $234 million from $51.4 million.

Basic and diluted earnings per share were $0.89 against last year’s earnings which were $0.16.

The performance of the fourth and final quarter of the year is in line with the numbers reported by it for Q3. It closed that quarter with a revenue of $656.1 million and a net income of $199.7 million.

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Ending an Exceptional Year

Overall, the company’s performance remained exceptional on a yearly basis. Total revenue for the year increased by 113.5 percent to $3.24 billion and the net income for the year was $1.12 billion. Virtu closed 2019 at a net loss of $103.7 million.

“Capping off a record-breaking 2020, we delivered exceptional performance globally in the fourth quarter,” said Douglas Cifu, CEO of Virtu Financial.

“Our market-making segment played a critical role in the markets by seamlessly executing trades, and ultimately delivering $1.3 billion of price improvement to individual investors. Our Execution Services segment had a record quarter, delivering outstanding service and further enhancements to our best-in-class products that drive value across the entire trade lifecycle and assist our clients in navigating our ever-changing market landscape.”

The impact of the numbers can be seen on the stock market as the company’s share prices jumped by 3.7 percent, as of press time, since the opening of Thursday’s trading.

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