Virtu Financial announced its Q1 2023 financial results, reporting a net income of $110.1 million.
Results were better quarterly but worse compared to Q1 2022.
Virtu
Financial (NASDAQ: VIRT), an electronic market maker, has announced its financial
results for the first quarter of 2023. The company reported a total revenue of
$610.5 million, increasing by 22.6% compared to the previous three-month
period. However, the year-over-year (YoY) metrics were 12.9% lower.
Virtu Financial Reports Higher
Revenue and Income in Q1 2023
In the
first quarter of 2023, Virtu Financial generated a net trading income of $411.5
million. The company's adjusted net trading income amounted to $373.1 million,
and the adjusted EBITDA was $207.5 million, with an adjusted EBITDA margin of
55.6%. Furthermore, under the Share Repurchase Program, the company conducted
share buybacks totaling $75.6 million, or 3.9 million shares.
When
comparing Virtu Financials' performance in Q1 2023 to Q4 2022, the company
experienced an increase of 31.3% in net trading revenue. The adjusted net trading
income per day rose by 38%, which comprised an increase of 53% in market-making
adjusted net trading income per day and an increase of 8% in execution services
adjusted net trading income per day.
Virtu's financial report. Source: Virtu Financial
As of 31
March 2023, Virtu Financial reported having $809.2 million in cash, cash
equivalents, and restricted cash. The company's total long-term debt
outstanding in an aggregate principal amount was $1,808.3 million.
In
addition, the Virtu Financial, Inc. Board of Directors declared a quarterly
cash dividend of $0.24 per share.
Worse Results for Virtu
than a Year Ago
Although
the quarterly results were significantly better compared to Q4 2022, the same
period a year earlier showed an evident decline in total revenue and net
trading income. Total revenue in Q1 2022 came in at $701.3 million, mainly due
to better results in the Market Making division, which amounted to $545.56
million compared to $489 million last quarter.
Adjusted
net trading income ranked at more than $505 million a year earlier, nearly
double the currently reported results. On the other hand, the final net income
was almost $200 million compared to the $110 million reported today. Thus, trading
income contracted 21% YoY and total revenues reduced 12.9%.
Q1 2023 looks worse than Q1 2022. Source: Virtu Financial
Three
months ago, Virtu presented its financial report for the fourth quarter and the
entire year of 2022, also showing lower revenues and net trading income compared
to the same period a year earlier.
In the
fourth quarter, the financial services and products provider saw a decrease of 43.6% YoY in total revenue, dropping from $485.6 million to $274.1 million. In addition, the
company experienced a quarterly decline, with revenues falling from $561
million in the third quarter. The weak revenue performance had a negative
impact on the net income, which came in at $39.6 million in Q4 2022, compared
to $186 million in the same quarter of the previous year. In contrast, the net
income in Q3 2022 was $79.9 million.
In
addition, the company has launched a lawsuit against the Securities and
Exchange Commission (SEC), which oversees the securities market in the United
States. The lawsuit is based on the Freedom of Information Act (FOIA). It aims
to compel the federal regulator to provide information about its rulemaking
process and the interaction of 'interested parties' with SEC's Chair, Gary
Gensler.
Virtu
Financial (NASDAQ: VIRT), an electronic market maker, has announced its financial
results for the first quarter of 2023. The company reported a total revenue of
$610.5 million, increasing by 22.6% compared to the previous three-month
period. However, the year-over-year (YoY) metrics were 12.9% lower.
Virtu Financial Reports Higher
Revenue and Income in Q1 2023
In the
first quarter of 2023, Virtu Financial generated a net trading income of $411.5
million. The company's adjusted net trading income amounted to $373.1 million,
and the adjusted EBITDA was $207.5 million, with an adjusted EBITDA margin of
55.6%. Furthermore, under the Share Repurchase Program, the company conducted
share buybacks totaling $75.6 million, or 3.9 million shares.
When
comparing Virtu Financials' performance in Q1 2023 to Q4 2022, the company
experienced an increase of 31.3% in net trading revenue. The adjusted net trading
income per day rose by 38%, which comprised an increase of 53% in market-making
adjusted net trading income per day and an increase of 8% in execution services
adjusted net trading income per day.
Virtu's financial report. Source: Virtu Financial
As of 31
March 2023, Virtu Financial reported having $809.2 million in cash, cash
equivalents, and restricted cash. The company's total long-term debt
outstanding in an aggregate principal amount was $1,808.3 million.
In
addition, the Virtu Financial, Inc. Board of Directors declared a quarterly
cash dividend of $0.24 per share.
Worse Results for Virtu
than a Year Ago
Although
the quarterly results were significantly better compared to Q4 2022, the same
period a year earlier showed an evident decline in total revenue and net
trading income. Total revenue in Q1 2022 came in at $701.3 million, mainly due
to better results in the Market Making division, which amounted to $545.56
million compared to $489 million last quarter.
Adjusted
net trading income ranked at more than $505 million a year earlier, nearly
double the currently reported results. On the other hand, the final net income
was almost $200 million compared to the $110 million reported today. Thus, trading
income contracted 21% YoY and total revenues reduced 12.9%.
Q1 2023 looks worse than Q1 2022. Source: Virtu Financial
Three
months ago, Virtu presented its financial report for the fourth quarter and the
entire year of 2022, also showing lower revenues and net trading income compared
to the same period a year earlier.
In the
fourth quarter, the financial services and products provider saw a decrease of 43.6% YoY in total revenue, dropping from $485.6 million to $274.1 million. In addition, the
company experienced a quarterly decline, with revenues falling from $561
million in the third quarter. The weak revenue performance had a negative
impact on the net income, which came in at $39.6 million in Q4 2022, compared
to $186 million in the same quarter of the previous year. In contrast, the net
income in Q3 2022 was $79.9 million.
In
addition, the company has launched a lawsuit against the Securities and
Exchange Commission (SEC), which oversees the securities market in the United
States. The lawsuit is based on the Freedom of Information Act (FOIA). It aims
to compel the federal regulator to provide information about its rulemaking
process and the interaction of 'interested parties' with SEC's Chair, Gary
Gensler.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
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Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
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In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
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A concise look at where compliance, onboarding, and AI-driven processes are heading next.
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Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
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We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
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Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
