Investment Technology Group, Inc. (ITG) announced that for the second quarter ended June 30, 2005, net income was $17.4 million, 83 percent higher than net income of $9.5 million in the second quarter of 2004 on higher trade volumes.
Domestically, ITG’s trading volume for the second quarter of 2005 was 6.4 billion shares (averaging 100 million shares per trading day) compared to 5.8 billion shares in the first quarter of 2005 (averaging 96 million shares per trading day) and 5.0 billion in the second quarter of 2004 (averaging 81 million shares per trading day).
Earnings were $0.41 per diluted share, an increase of 86 percent versus earnings of $0.22 per diluted share in the second quarter of last year. ITG’s total revenues for the second quarter of 2005 were $102.2 million, 26 percent higher than total revenue of $81.0 million for the second quarter of 2004. Net income included $1.0 million, or $0.02 per share, of recognized tax benefits from certain capital loss carry-forwards.
“ITG’s strong performance and continued market share gain this quarter demonstrate the progress we’ve made in successfully executing ITG’s corporate growth strategy,” stated Ray Killian, ITG’s Chairman, President and Chief Executive Officer. “The Macgregor acquisition will be an important step forward and we remain committed to offering customers superior service and solutions across the trading spectrum.”
ITG’s International business posted a record quarter with revenues of $22.9 million, 15 percent higher than revenues of $19.9 million in the second quarter of 2004. Excluding the impact of the second quarter of 2004 non-recurring pretax gain of $2.4 million, International revenues increased by 31 percent from second quarter 2004 operating revenues of $17.5 million. International pre-tax operating profits grew from $0.3 million in the second quarter of 2004 to $2.0 million in the second quarter of 2005.
“We have continued to make progress in our international expansion, and I look forward to continued revenue growth and contribution to ITG earnings in 2005 and beyond,” stated Mr. Killian.