Automated global electronic market maker and broker Interactive Brokers Group, Inc. (IBKR), Thursday reported lower profit for the fourth quarter, hurt by a decline in the revenue, though the company's customer accounts increased in the quarter.
The Greenwich, Connecticut-based group's fourth quarter net income available for common shareholders plunged to $2.3 million or $0.06 per share from $20.3 million or $0.49 per share in the year-ago period. On average, seven analysts polled by Thomson Reuters expected the company to earn $0.22 per share for the quarter. Analysts' estimates typically exclude one-time items.
Interactive Brokers' quarterly total net revenues declined to $200.4 million, from previous year quarter revenue of $429.3 million. Analysts expected revenue of $295.40 million for the fourth quarter.
On a segmental basis, revenue from market making fell to $75.2 million from $308.8 million, and electronic brokerage revenues dropped to $125.1 million from $118.7 million in the same quarter last year.
In the recent quarter, pre-tax profit margin fell to 26% from 63% last year. Pre-tax profit margin in electronic brokerage was 49%, while in market making segment pre-tax profit margin declined 5% in the fourth quarter.
The company reported a 21% increase in customer accounts and a 71% increase in customer equity from the year ago quarter. The group's quarterly interest expenses dropped to $15.4 million form $45.5 million, while total non-interest expenses declined to $148.2 million from $160.3 million.
For the full year, net income available to common shareholders was $36.2 million or $0.87 per share, compared to $93.0 million or $2.24 per share in the prior-year. Total revenue for the full year, declined to $1.1 billion from $1.85 billion last year.
IBKR closed Thursday's regular trading session at $16.50, up $0.20 or 1.23% on a volume of 1.01 million and in the after hours the stock declined 8.42% or $1.39,trading at $15.11 on the Nasdaq.
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