(RTTNews) - Thursday, Investment Technology Group, Inc. (ITG: News ), an agency broker and financial technology firm, reported a decline in net income for the third quarter, primarily attributable to a fall in commissions and fees revenue.

Net income for the quarter declined to $17.5 million or $0.40 per share, compared with $27.2 million or $0.62 per share year-ago. On average, nine analysts polled by Thomson Reuters estimated earnings of $0.42 per share. Analysts' estimates typically exclude special items.

The company's revenues for the quarter declined to $158.4 million from $188.3 million for the comparable quarter year-ago. Wall Street analysts estimated revenues of $160.63 million.

Segment-wise, revenues from commissions and fees, which is the largest contributor to total revenue, declined to $132.06 million from $162.08 million, while other revenues declined to $4.22 million from $4.23 million a year-ago. Recurring revenues increased slightly to $22.14 million from $21.96 million in the prior year period. Revenues from Canada were hit by declining market volumes and a rapidly changing market structure.

The company's total expenses declined to $130.40 million from $142.71 million year-ago.
"The third quarter saw mutual fund flows directed largely towards international funds and index funds, with flows to our core active domestic clients turning negative in August," said Bob Gasser, chief executive officer.

For the nine month period, the company's net income was $50.6 million or $1.15 per share, compared with $85.9 million or $1.95 per share in the year-ago period. Year-to-date revenues were $482.1 million, compared with $572.9 million in the prior year period.

ITG is currently trading on the New York Stock Exchange at $22.36, down $1.60 or 6.68%.

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by RTT Staff Writer

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