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

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.

Total revenues increased 176.6% to $1,004.1 million for this quarter, driven by heightened levels of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term, 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 Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term.

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.

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.