Doug Cifu, CEO of Virtu Financial, said that the company had another record year in options market making in 2022б as it continues to expand across venues, asset classes and geographies.
“We continue to view our investment in this business as a key long-term engine of growth,” he said.
He added that revenues have maintained an upward trajectory as the company continues to invest in fixed income and become a dealer in the corporate bond market in addition to its existing ETF Block business.
The Company has two operating segments: Market Making and Execution Services. Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities.
According to Cifu, Virtu continues to view crypto as a long-term growth opportunity, notwithstanding recent market events.
“Our venture with Citadel Securities, Fidelity Digital and Charles Schwab to develop a crypto ecosystem to serve the interests of global investors is proceeding nicely,” he said.
“We believe EDX will accelerate the institutional adoption of crypto assets by providing a stable and resilient medium for investing in crypto across established global brokerage platforms,” he added.
Overall, for the quarter ended December 30, 2022, Virtu Financial reported total revenues of $497.8 million, a 29.5% decrease, compared to $705.6 million for the same period in 2021.
Trading income, net, decreased to $313.3 million for the quarter compared to $513.4 million for the same period in 2021.
Net income totaled $39.6 million for this quarter, compared to net income of $186.0 million in the prior year quarter.
Basic and diluted earnings per share for this quarter were $0.27,compared to a basic and diluted earnings per share of $0.90, and $0.89, respectively, for the same period in 2021. Adjusted Net Trading Income decreased 43.6% to $274.1 million for this quarter, compared to $485.6 million for the same period in 2021.
Adjusted EBITDA decreased 61.8% to $125.4 million for this quarter, compared to $328.4 million for the same period in 2021. Normalized Adjusted Net Income, removing one-time and non-cash items, decreased 70.9% to $64.1 million for this quarter, compared to $220.6 million for the same period in 2021. 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 $0.37 for this quarter, compared to $1.19 for the same period in 2021.
For the year, total revenues decreased 15.9% to $2,364.8 million for this year, compared to $2,811.5 million for 2021.
Trading income, net, decreased 22.6% to $1,628.9 million for this year, compared to $2,105.2 million for 2021.
Net income totaled $468.3 million for this year, compared to net income of $827.2 million for 2021.
Virtu repurchased 2.1 million shares for $45m in 4Q 2022.
Since inception of the program in November 2020 through settlement date January 17, 2023, the Company repurchased approximately 32.7 million shares of Class A Common Stock and Virtu Financial Units for approximately $908.1 million. The Company has approximately $311.9 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.
Doug Cifu: Virtu Reports Record Year in Options Making
Doug Cifu, CEO of Virtu Financial, said that the company had another record year in options market making in 2022 as it continues to expand across venues, asset classes and geographies. “We continue to view our investment in this business as a key long-term engine of growth,” he said.
“Revenues have maintained an upward trajectory as we continue to invest in fixed income and become a dealer in the corporate bond market in addition to our existing ETF Block business,” he said.
The Company has two operating segments: Market Making and Execution Services. Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities.
According to Cifu, Virtu continues to view crypto as a long-term growth opportunity, notwithstanding recent market events.
“Our venture with Citadel Securities, Fidelity Digital and Charles Schwab to develop a crypto ecosystem to serve the interests of global investors is proceeding nicely,” he said.
“We believe EDX will accelerate the institutional adoption of crypto assets by providing a stable and resilient medium for investing in crypto across established global brokerage platforms,” he added.
Overall, for the quarter ended December 30, 2022, Virtu Financial reported total revenues of $497.8 million, a 29.5% decrease, compared to $705.6 million for the same period in 2021.
Trading income, net, decreased to $313.3 million for the quarter compared to $513.4 million for the same period in 2021.
Net income totaled $39.6 million for this quarter, compared to net income of $186.0 million in the prior year quarter.
Basic and diluted earnings per share for this quarter were $0.27,compared to a basic and diluted earnings per share of $0.90, and $0.89, respectively, for the same period in 2021. Adjusted Net Trading Income decreased 43.6% to $274.1 million for this quarter, compared to $485.6 million for the same period in 2021.
Adjusted EBITDA decreased 61.8% to $125.4 million for this quarter, compared to $328.4 million for the same period in 2021. Normalized Adjusted Net Income, removing one-time and non-cash items, decreased 70.9% to $64.1 million for this quarter, compared to $220.6 million for the same period in 2021. 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 $0.37 for this quarter, compared to $1.19 for the same period in 2021.
For the year, total revenues decreased 15.9% to $2,364.8 million for this year, compared to $2,811.5 million for 2021.
Trading income, net, decreased 22.6% to $1,628.9 million for this year, compared to $2,105.2 million for 2021.
Net income totaled $468.3 million for this year, compared to net income of $827.2 million for 2021.
Virtu repurchased 2.1 million shares for $45m in 4Q 2022.
Since inception of the program in November 2020 through settlement date January 17, 2023, the Company repurchased approximately 32.7 million shares of Class A Common Stock and Virtu Financial Units for approximately $908.1 million. The Company has approximately $311.9 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.
