Virtu Financial’s Q2 Trading Income Falls as Revenue Shrinks 17% to $507M

<p>Virtu
Financial, a New York-based electronic market maker, generated lower revenue
and net trading income during the second quarter (Q2) of this year, according to its
latest financial results released today (Wednesday). Total revenue during the
period came in at $506.9 million, declining by 17% quarter-over-quarter (QoQ)
and 16.2% year-over-year (YoY).</p><p>Performance Plummets in Q2 </p><p>During the
recent quarter, the American broker-dealer, which majorly engages in
market-making and <a href="https://www.financemagnates.com/terms/e/execution/">execution</a> services, reported a net trading income of $306.2
million. The figure represents a 26% QoQ drop <a href="https://www.financemagnates.com/institutional-forex/virtu-financial-reports-226-jump-in-quarterly-revenue-to-611-million/" target="_blank" rel="follow">from $411.5 million</a>. The income also descended by 23% when compared with $395.9 million generated during
the same period in 2022.</p><p>Furthermore,
details shared by Virtu Financial show that its adjusted net trading income slumped
by 22% to $278.7 million during the last quarter, which is down from $357.4
million posted in Q2 of
2022. In addition, the electronic market maker reported adjusted earnings
before interest, taxes, depreciation, and amortization (EBITDA) of $122
million. The earnings fell by 43% compared to $209.3 million from the same quarter
last year.</p><p>Moreover,
Virtu Financial in the statement noted that its Board of Directors have
declared a quarterly cash dividend of $0.24 per share. The
Nasdaq-listed company
declared the same dividend during the last quarter. On the
other hand, Virtu Financial returned $0.16 in basic and diluted earnings during the recent quarter. The earnings slumped by 79% from $0.78 seen during Q2
2022.</p><p>Virtu
Financial Reports Poor End of 2022</p><p>Meanwhile,
<a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported that Virtu Financial also <a href="https://www.financemagnates.com/institutional-forex/virtu-financials-2022-net-income-declined-by-43/" target="_blank" rel="follow">posted lower revenue</a> and net
trading income during the fiscal year 2022. The financial services and products
provider’s total revenue fell by 15.9% to $2.4 billion. Net profit for the period
also went down by 43% from $827.2 million in 2021 to $468.3 million.</p><p>On the
contrary, XTX Markets recently reported <a href="https://www.financemagnates.com/institutional-forex/xtxs-profit-from-uk-operations-surges-above-1-billion-in-2022/" target="_blank" rel="follow">a massive leap in the net profit</a> generated
by its UK entities during the fiscal year 2022. The
global algorithmic trading firm’s profit from the subsidiaries skyrocketed from
£667 million in 2021 to £1.095 billion last year.</p><p>Tiger launched HK stocks' auto-invest; Moneta has hired a new manager; <a href="https://www.financemagnates.com/forex/news-nuggets-26-july-tiger-launches-hk-stocks-auto-invest-moneta-hires-new-manager/" target="_blank" rel="follow">read today's news nuggets</a>.</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.