Interactive Brokers Second Quarter Results Miss Guidance

Interactive Brokers Group (IBKR), an automated electronic broker, said late on Tuesday that second-quarter results missed the market’s forecasts as a decline in commissions revenue partially offset growth in net interest income.

Total net sales fell to $413 million during the three months that ended June 30, from $445 million a year ago, due in part to a drop in commissions revenue from the dominant electronic brokerage segment, the firm, which operates the largest electronic trading platform in the US by number of daily average revenue trades, said in a statement. Analysts in a Capital IQ poll had projected group turnover to increase to $451 million.

Earnings per share dropped to $0.43 from $0.57 a year earlier, lagging the Street’s view of $0.49.

IBKR said its results included a $6 million loss on a currency diversification strategy, compared with a $21 million loss a year ago. Additionally, it recognized a mark-to-market loss of about $74 million in its investment in Tiger Brokers, compared with a sequential mark-to-market gain of $103 million in the first quarter.

The Greenwich, Connecticut-based group, which reported a 19% year-on-year jump in the number of customer accounts to 645,000, set out an unchanged quarterly dividend of $0.10 per share, payable September 13.

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