LL schreef op 4 augustus 2021 13:10:Virtu Announces Second Quarter 2021 Results
Virtu Financial, LLC
Wed, August 4, 2021, 1:00 PM
NEW YORK, Aug. 04, 2021 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the second quarter ended June 30, 2021.
Second Quarter 2021:
Net income of $108.9 million; Normalized Adjusted Net Income1 of $122.3 million
Basic earnings per share of $0.51 and diluted earnings per share of $0.50; Normalized Adjusted EPS1 of $0.63
Total revenues of $549.0 million; Trading income, net, of $384.8 million; Adjusted Net Trading Income1 of $341.8 million
Adjusted EBITDA1 of $197.3 million; Adjusted EBITDA Margin1 of 57.7%
Share buybacks of $101.3 million, or 3.4 million shares, under the Share Repurchase Program2
"Our results reflect our resilient and balanced business model, against a backdrop of more muted market activity in the second quarter," said Douglas Cifu, CEO of Virtu Financial. "Our growth initiatives continue to produce steady results, especially in options where our business increased overall despite the decline in market volumes."
The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on September 15, 2021 to shareholders of record as of September 1, 2021.
Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.
Note 2: Shares repurchased calculated on a settlement date basis.
Second Quarter 2021:
Total revenues decreased 39.4% to $549.0 million for this quarter, driven primarily by lower trading volumes in U.S. equities, compared to $905.9 million for the same period in 2020, when volumes were significantly elevated due to the COVID-19 pandemic. Trading income, net, decreased 48.3% to $384.8 million for this quarter, compared to $744.0 million for the same period in 2020. Net income totaled $108.9 million for this quarter, compared to net income of $335.3 million in the prior year quarter.
Basic earnings per share for this quarter was $0.51 and diluted earnings per share was $0.50, compared to a basic earnings per share of $1.59 and diluted earnings per share of $1.58 for the same period in 2020.
Adjusted Net Trading Income decreased 48.9% to $341.8 million for this quarter, compared to $668.7 million for the same period in 2020. Adjusted EBITDA decreased 59.4% to $197.3 million for this quarter, compared to $485.8 million for the same period in 2020.
Normalized Adjusted Net Income, removing one-time integration costs and non-cash items, decreased 64.0% to $122.3 million for this quarter, compared to $340.0 million for the same period in 2020.
Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $0.63 for this quarter, compared to $1.73 for the same period in 2020.
Operating Segment Information
The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.
Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.
Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. The segment also includes the results of the Company's capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.
Corporate contains the Company's investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.
The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three and six months ended June 30, 2021 and 2020.