Investment Technology Group Inc. (ITG, Financial) filed Quarterly Report for the period ended 2009-06-30.
Investment Technology Group is one of the leading providers of technology-based equity trading services and transaction research to institutional investors and brokers. ITG\'s services help clients to access liquidity execute trades more efficiently and make better trading decisions. They offer a fully-integrated family of advanced trading services encompassing three business lines: POSIT Client-Site Trading Products and Electronic Trading Desk. Investment Technology Group Inc. has a market cap of $1.02 billion; its shares were traded at around $23.49 with a P/E ratio of 10.93 and P/S ratio of 1.34. Investment Technology Group Inc. had an annual average earning growth of 8.2% over the past 10 years. GuruFocus rated Investment Technology Group Inc. the business predictability rank of 2.5-star.
In Canada, ITGs Second Quarter 2009 revenue was $19.3 million, decreasing $0.5 million or 2% from the comparable 2008 quarter. The revenue decline was the result of the strengthening of the U.S. Dollar, which reduced revenues and pre-tax income by approximately $3.0 million and $0.9 million, respectively.
close. The decline in market values was a primary driver in our revenues decreasing 8% to $18.7 million in Second Quarter 2009 relative to the comparable 2008 quarter, as trading commissions are generally based on the value of a customer trade, or ad valorem, within our European operation. The strengthening of the U.S. Dollar relative to the Pound Sterling negatively affected revenue by $5.1 million while favorably affecting pre-tax income by $0.4 million during Second Quarter 2009 as compared to Second Quarter 2008.
Our Asia Pacific Operations were adversely affected by further declines in the value of shares traded in Second Quarter 2009 compared with the comparable 2008 quarter. The Nikkei 225, Hang Seng and ASX 200 indices fell 26%, 17% and 23%, respectively, while our Asia Pacific Operations revenues decreased 7% to $8.0 million in Second Quarter 2009 relative to the comparable 2008 quarter. Asia Pacific commissions are generally ad valorem. The strengthening of the U.S. Dollar relative to other major currencies negatively affected Asia Pacific revenue by $0.6 million while favorably affecting pre-tax income by $0.2 million.
Canadian commission and fee revenues declined due to an unfavorable currency impact of $2.6 million. Excluding currency translation these revenues increased $2.9 million. Interlisted arbitrage trading generated $2.3 million in Second Quarter 2009, down from the $3.2 million achieved in the comparable 2008 quarter.
Overall, currency translation reduced total revenues and pre-tax income by $3.0 million and $0.9 million, respectively.
Read the The complete ReportITG is in the portfolios of Third Avenue Management, John Keeley of Keeley Fund Management.
Investment Technology Group is one of the leading providers of technology-based equity trading services and transaction research to institutional investors and brokers. ITG\'s services help clients to access liquidity execute trades more efficiently and make better trading decisions. They offer a fully-integrated family of advanced trading services encompassing three business lines: POSIT Client-Site Trading Products and Electronic Trading Desk. Investment Technology Group Inc. has a market cap of $1.02 billion; its shares were traded at around $23.49 with a P/E ratio of 10.93 and P/S ratio of 1.34. Investment Technology Group Inc. had an annual average earning growth of 8.2% over the past 10 years. GuruFocus rated Investment Technology Group Inc. the business predictability rank of 2.5-star.
Highlight of Business Operations:
In the three months ended June 30, 2009 (Second Quarter 2009), our consolidated revenues decreased 7% to $168.0 million relative to the three months ended June 30, 2008 (Second Quarter 2008) while our operating expenses decreased slightly to $134.0 million. Net income for Second Quarter 2009 was $20.3 million, or $0.46 per diluted share, as compared to $25.7 million, or $0.58 per diluted share in Second Quarter 2008. Our U.S. based revenue was $122.0 million in Second Quarter 2009, declining $9.7 million or 7% compared to Second Quarter 2008.In Canada, ITGs Second Quarter 2009 revenue was $19.3 million, decreasing $0.5 million or 2% from the comparable 2008 quarter. The revenue decline was the result of the strengthening of the U.S. Dollar, which reduced revenues and pre-tax income by approximately $3.0 million and $0.9 million, respectively.
close. The decline in market values was a primary driver in our revenues decreasing 8% to $18.7 million in Second Quarter 2009 relative to the comparable 2008 quarter, as trading commissions are generally based on the value of a customer trade, or ad valorem, within our European operation. The strengthening of the U.S. Dollar relative to the Pound Sterling negatively affected revenue by $5.1 million while favorably affecting pre-tax income by $0.4 million during Second Quarter 2009 as compared to Second Quarter 2008.
Our Asia Pacific Operations were adversely affected by further declines in the value of shares traded in Second Quarter 2009 compared with the comparable 2008 quarter. The Nikkei 225, Hang Seng and ASX 200 indices fell 26%, 17% and 23%, respectively, while our Asia Pacific Operations revenues decreased 7% to $8.0 million in Second Quarter 2009 relative to the comparable 2008 quarter. Asia Pacific commissions are generally ad valorem. The strengthening of the U.S. Dollar relative to other major currencies negatively affected Asia Pacific revenue by $0.6 million while favorably affecting pre-tax income by $0.2 million.
Canadian commission and fee revenues declined due to an unfavorable currency impact of $2.6 million. Excluding currency translation these revenues increased $2.9 million. Interlisted arbitrage trading generated $2.3 million in Second Quarter 2009, down from the $3.2 million achieved in the comparable 2008 quarter.
Overall, currency translation reduced total revenues and pre-tax income by $3.0 million and $0.9 million, respectively.
Read the The complete ReportITG is in the portfolios of Third Avenue Management, John Keeley of Keeley Fund Management.
