|
 |
||
Interactive Brokers Group Announces 1Q09 Results
Reports Income Before Taxes Of $167 Million On $296 Million In Net Revenues, Earnings Per Share Of $0.30
Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated global electronic market maker and broker, today reported diluted earnings per share of $0.30 for the quarter ended March 31, 2009, compared to diluted earnings per share of $0.66 for the same period in 2008.
Net revenues were $296 million and income before income taxes was $167 million for this quarter, compared to net revenues of $528 million and income before income taxes of $374 million for the same period in 2008.
- 56% pre-tax profit margin for this quarter.
- $4.4 billion in equity.
- 17% increase in customer accounts from the year ago quarter.
- Cleared DARTs grew by 9% to 330,000 from the year ago quarter.
- 65% Market Making pre-tax margin for this quarter.
- 42% Electronic Brokerage pre-tax margin for this quarter.
"Our strict risk controls have not completely immunized us from the secondary
effects of the financial crises as our results have been largely impacted by
competitive pressures on spreads. Exchange listed options are one of the few
life rafts still afloat and more and more traders are trying to hold onto it,"
said Thomas Peterffy, our CEO. "On the other hand, due to the popularity
of our brokerage offering among professional traders, we were able to overcome
deteriorating industry trends
in that segment
of our business."
Market Making
Market Making segment income before income taxes decreased 63% in the quarter
ended March 31, 2009 compared to the same period last year. Pre-tax margin
was 65% in this quarter, down from 80% in the same period last year. The first
quarter of 2008 was an exceptional period with high market volumes and volatility.
In this quarter, we continued to avoid counterparty risks and balance sheet
exposure from illiquid positions by making markets only in exchange traded
products that are cleared through central clearing houses. Market Making options
contract volume decreased by 14% in this quarter compared to the same period
last year. Due to a change in the method we use for measuring our market making
volume on the Brazilian exchange, our overall options contract volume for 2008
was reduced by 17% for the 4th quarter and by 5% for the full year from previously
reported numbers. We initiated trading in Brazil in the 3rd quarter of 2008.
The change in method was made to improve comparability of Brazilian options
contracts to volume in other markets.
Electronic Brokerage
Electronic Brokerage segment income before income taxes declined 21% in the
quarter ended March 31, 2009 compared to the same period in 2008. Most of this
decline was attributable to lower net interest income, adversely affected by
lower benchmark interest rates. Customer account growth was healthy and customer’s
trading activity remained robust. Pre-tax margin was 42% for the quarter ended
March 31, 2009. Our real-time margining system worked efficiently during the
periods of severe market stress, allowing us to avoid most of the losses associated
with large adverse price moves. Cleared DARTs* increased by 9% to 330,000 in
the quarter ended March 31, 2009 from the same period in 2008.
*Daily average revenue trades (DARTs) are based on customer orders.
Conference Call Information:
Interactive Brokers Group will hold a conference call with investors today,
April 23, 2009, at 5:30 p.m. ET to discuss its first quarter results. Investors
who would like to listen to the conference call live should dial 888-205-6648
(U.S. domestic) and 913-312-0647 (international). The number should be dialed
approximately ten minutes prior to the start of the conference call. Ask for
the “Interactive Brokers Conference Call."
The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.
About Interactive Brokers Group, Inc.:
Interactive Brokers Group is an automated global electronic market maker and
broker specializing in routing orders and executing and processing trades
in securities, futures and foreign exchange instruments on more than 80 electronic
exchanges and trading venues around the world. As a market maker, we provide
liquidity at these marketplaces and, as a broker, we provide professional
traders and investors with direct access to stocks, options, futures, forex,
bonds and mutual funds from a single IB Universal AccountSM. Employing proprietary
software on a global communications network, Interactive Brokers Group continuously
integrates its software with a growing number of exchanges and trading venues
into one automatically functioning, computerized platform that requires minimal
human intervention.
Cautionary Note Regarding Forward-Looking Statements:
The foregoing information contains certain forward-looking statements that
reflect the company's current views with respect to certain current and future
events and financial performance. These forward-looking statements are and
will be, as the case may be, subject to many risks, uncertainties and factors
relating to the company's operations and business environment which may cause
the company's actual results to be materially different from any future results,
expressed or implied, in these forward-looking statements. Any forward-looking
statements in this release are based upon information available to the company
on the date of this release. The company does not undertake to publicly update
or revise its forward-looking statements even if experience or future changes
make it clear that any statements expressed or implied therein will not be
realized. Additional information on risk factors that could potentially affect
the company's financial results may be found in the company's filings with
the Securities and Exchange Commission.
For Interactive Brokers Group, Inc. Media: Andrew Wilkinson, 203-913-1369 or Investors: Deborah Liston, 203-618-4070.
