Investment Technology Group (NYSE: ITG), a leading agency broker and financial technology firm, today announced that for the year ended December 31, 2008, revenues were a record $763.0 million, net income was a record $114.6 million, and diluted earnings per share were a record $2.61.
Compared to 2007, revenues increased 4 percent, net income grew 3 percent and diluted earnings per share increased 5 percent. Pre-tax operating margins were 25.8 percent in both 2008 and 2007.
For the fourth quarter ended December 31, 2008, net income was $28.7 million, down 4 percent from net income of $30.0 million in the fourth quarter of 2007. Earnings were $0.66 per diluted share, a decrease of 3 percent versus earnings of $0.68 per diluted share in the fourth quarter of last year. ITG's total revenue for the fourth quarter of 2008 was $190.1 million, 3 percent less than total revenue of $196.6 million for the fourth quarter of 2007. Included in the quarter's operating results were pre-tax charges of $5.3 million related to severance costs and write-downs of capitalized costs pertaining to discontinued non-core products. Net income for the fourth quarter also included a non-operating charge of $0.9 million after-tax, or approximately $0.02 per diluted share of earnings, representing the unrealized loss on NYSE Euronext, Inc., common stock at December 31, 2008. Pre-tax operating margins in the fourth quarter were 25.4 percent in 2008, compared to 25.7 percent in 2007.
"ITG's strong 2008 performance yielded record earnings despite an extremely challenging year for the markets. Our agency model, diverse product suite, and solid balance sheet became even more important to our clients as a result of a significant shift in market structure," said Bob Gasser, ITG's Chief Executive Officer and President. "ITG's core strength is the intellectual capital and dedication of its employees, who deserve our thanks for these impressive results."
For the full year, non-US revenues were $191.7 million, representing 4 percent growth over revenues of $185.0 million in 2007. Non-US pre-tax income was $14.5 million versus $22.9 million in 2007. ITG's non-US revenues were $46.0 million in the fourth quarter of 2008, a 19 percent decrease from $57.1 million in the fourth quarter of 2007, due to currency impact of the strengthening US dollar. Non-US pre-tax income decreased to $2.5 million in the fourth quarter of 2008 from $7.2 million in the fourth quarter of 2007.
"ITG has built a strong foundation for its international businesses and is well-prepared to weather the uncertain outlook for global markets in 2009," said Mr. Gasser. "We are confident that our long term global investment strategies mirror our clients' needs in the increasingly electronic markets in Europe, Asia Pacific, and Canada and the seismic changes in the competitive landscape."
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