Virtu Financial incurs net loss of $5.2m in Q3 2019 due to costs of ITG acquisition

Maria Nikolova

In the three months to end-September 2019, the company registered a net loss of $5.2 million, as a result of costs associated with the ITG acquisition and amortization of purchased intangibles.

Virtu Financial Inc (NASDAQ:VIRT) today reported its financial results for the quarter to September 30, 2019.

The company incurred a net loss of $5.2 million, as a result of costs associated with the ITG acquisition and amortization of purchased intangibles. Normalized Adjusted Net Income during thee third quarter of 2019 was $39.6 million.

Basic and diluted loss per share for the period is $0.04, whereas Normalized Adjusted EPS are $0.21.

Total revenues for the three-month period to end-September 2019 amounted to $385.4 million, whereas trading income, net amounted to $220.1 million. Adjusted Net Trading Income totalled $249.8 million.

Adjusted Net Trading Income increased 40.4% to $249.8 million for this quarter, compared to $177.9 million for the same period in 2018. Adjusted EBITDA increased 17.7% to $103.9 million for this quarter, compared to $88.3 million for the same period in 2018. Normalized Adjusted Net Income decreased 5.8% to $39.6 million for this quarter, compared to $42.0 million for the same period in 2018.

The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on December 16, 2019 to shareholders of record as of December 2, 2019.

Douglas A. Cifu, Chief Executive Officer, commented:

“While the environment in the 3rd quarter continued to be challenging, I am very pleased with our performance globally. Our market making segment saw pockets of elevated volatility in the quarter and we capitalized on these opportunities and otherwise performed in line with our expectations. On the execution services side, we continue to reap the benefits of the ITG acquisition as we integrate and improve the broad spectrum of ITG’s financial services products into our scaled multi asset class global architecture.”

“We believe we are only beginning to implement and discover the multiple ways to serve our clients better through this acquisition. We are ahead of schedule in all aspects of the ITG integration, have raised our overall synergy targets and have repaid $100.0 million of our long term debt since the closing on March 1st,” Douglas A. Cifu added.

Let’s recall that, in March this year, Virtu Financial announced the completion of its acquisition of Investment Technology Group, Inc. (NYSE:ITG) in a cash transaction valued at $30.30 per ITG share, or a total of approximately $1.0 billion.

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