Q2 2024 Virtu Financial Inc Earnings Call Transcript
Key Points
- Virtu Financial Inc (VIRT) reported $0.83 of adjusted EPS and $6.1 million per day of adjusted net trading income for Q2 2024.
- The company achieved a 56.5% EBITDA margin and $218 million of EBITDA on an adjusted basis.
- Virtu's execution services business performed exceptionally well, with adjusted net trading income up 3% over the first quarter.
- The company has made significant investments in technology and infrastructure, leading to increased client adoption and third-party validation.
- Virtu's market making business delivered strong results despite reduced volatility, with notable performance in single stock and ETFs across multiple regions.
- US notional turnover was down almost 6%, Pan-European notional turnover was down about 2% per day, and Tokyo Stock Exchange notional turnover was down about 10%.
- Softer results were observed in certain commodity segments during the second quarter.
- Crypto market making business faced muted opportunities as spot Bitcoin ETF volumes were down over 30% compared to Q1.
- The company's share repurchase program was within guidelines but did not significantly exceed expectations.
- Section 31 fees increased significantly, impacting profitability and leading to wider bid-offer spreads.
Good day, and thank you for standing by. Welcome to the Virtu Financial 2024 second-quarter results conference call. (Operator Instructions) Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrew Smith, Head of Investor Relations. Please go ahead.
Thank you, Kevin, and good morning, everyone. Thank you for joining us. Our second quarter results were released this morning and are available on our website. With us today and on this morning's call, we have Mr. Douglas Cifu, our Chief Executive Officer; Mr. Joseph Molluso, our Co-President and Co-Chief Operating Officer; and Mr. Sean Galvin, our Chief Financial Officer. We will begin with prepared remarks and then take your questions.
First, a few reminders. Today's call may include forward-looking statements, which represent Virtu's current belief regarding future events that are, therefore, subject to risks, assumptions and uncertainties, which may be outside the company's
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