MarketAxess’ total revenues for the third quarter of 2007 increased 6.9% to $22.2 million, compared to $20.8 million in the third quarter of 2006.
Pre-tax income for the third quarter of 2007 was $3.6 million, an increase of 63.4% compared to $2.2 million in the third quarter of 2006. Net income in the third quarter of 2007 totaled $2.4 million, or $0.07 per share on a diluted basis, an increase of 85.8% compared to $1.3 million, or $0.04 per share on a diluted basis, in the third quarter of 2006.
Pre-tax margin in the third quarter of 2007 was 16.4%, compared to 10.7% in the third quarter of 2006.
“Platform trading volumes in the third quarter were negatively impacted by the severe and widespread dislocation in the credit markets during the period. Despite this shock to the market and the temporary migration of trading to the telephone, we recorded our third highest quarter for total revenue generation, driven in part by the first full quarter’s impact of our new European high-grade fee plan. Furthermore, our continued focus on expense discipline drove incremental margins higher, reflecting the strong operating leverage and free cash flow generation in our business model,” says Richard M. McVey, chairman and CEO, MarketAxess.