Virtu Posts Strong Q1 Results; Total Revenues Up 177% to $1M

Quarter was marked by Covid-19 impact on our country and the world - Virtu

NASDAQ-listed trading specialist Virtu today reported stellar results for the first quarter, which ended March 31, 2020.

The Virtu Financial  Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on June 15, 2020, to shareholders of record as of June 1, 2020.

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Total revenues increased 176.6% to $1,004.1 million for this quarter, driven by heightened levels of volatility, bid-ask spreads and trading volumes across global markets and asset classes due to the COVID-19 pandemic, compared to $363.0 million for the same period in 2019.

Trading income, net, increased 211.6% to $802.5 million for this quarter, compared to $257.5 million for the same period in 2019. Net income totaled $388.2 million for this quarter, compared to a net loss of $13.6 million in the prior year’s quarter, which included costs related to the ITG acquisition.

Basic and diluted earnings per share for this quarter was $1.80, compared to a loss per share of $0.07 for the same period in 2019.

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Adjusted Net Trading Income increased 242.8% to $784.5 million for this quarter, compared to $228.8 million for the same period in 2019.  Adjusted EBITDA increased 358.6% to $569.7 million for this quarter, compared to $124.2 million for the same period in 2019. Normalized Adjusted Net Income increased 519.7% to $400.3 million for this quarter, compared to $64.6 million for the same period in 2019.

Covid-19 challenge

“The quarter was of course marked by the impact of COVID-19 on our country and broader world. Our thoughts are with the global communities affected by this unprecedented pandemic and we thank all of the front line responders working to restore and protect public health,” says Doug Cifu, Chief Executive Officer.

He notes that during this challenging period, Virtu has focused its efforts on providing its core services to the markets and clients the company serves, protecting its employees and other constituents through appropriate remote work arrangements, and supporting the communities in which the firm operates.

“Our record performance in the first quarter exemplifies the strength of our business model to handle unprecedented levels of market volumes and volatility and its long-term sustainability throughout all market environments,” he adds.

“While the long term impact on markets and the global economy is not known, we are confident we will apply what we’ve learned thus far and emerge even stronger as a company and continue to deliver long term value to our clients and shareholders,” Cifu says.

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