MarketAxess, the operator of an electronic trading platform for US and European high-grade corporate bonds, emerging markets bonds and other types of fixed income securities, has reported an increase in total revenues for the first quarter of 2010 of 41.6 per cent.
Revenues at 31 March 2010 were USD34.9m, compared to USD24.6m for the first quarter of 2009.
Pre-tax income was a record USD11.1m, compared to USD4.7m for the first quarter of 2009, an increase of 134.3 per cent.
Pre-tax margin was 31.8 per cent, compared to 19.2 per cent for the first quarter of 2009.
Net income totalled USD6.7m, or USD0.17 per share on a diluted basis, compared to USD2.8m, or USD0.08 per share on a diluted basis, for the first quarter of 2009.
Commission revenue for the first quarter of 2010 totalled USD29.3m on total trading volume of USD99.2bn, compared to USD20.4m in commission revenue on total trading volume of USD60.1bn for the first quarter of 2009.
US high-grade trading volume as a percentage of Finra’s high-grade Trace trading volume increased to an estimated 7.9 per cent, compared to an estimated 5.7 per cent for the first quarter of 2009.
Technology products and services revenue, which includes revenue for technology licenses, support and professional services, totalled USD3.2m for the first quarter of 2010, compared to USD2.0m for the first quarter of 2009.
Other revenue, which consists of information and user access fees, investment income and other revenue, increased 11.6 per cent to USD2.4m, compared to USD2.2m for the first quarter of 2009.
Total expenses for the first quarter of 2010 increased 19.6 per cent to USD23.8m, compared to USD19.9m for the first quarter of 2009. The increase was primarily due to higher employee compensation and benefits expense of USD2.5m and USD0.6m in one-time expenses related to the relocation to our new corporate headquarters and the Haiti Charity Trading Day.
As of 31 March 2010, total assets were USD272.6m and included USD167.7m in cash, cash equivalents and securities, and a deferred tax asset of USD20.6m. Total stockholders’ equity, including the series B preferred stock was USD252.5m.
"Our strategy to expand our institutional trading network throughout the credit crisis is paying off with record revenues and earnings as the markets continue to recover," says Richard M. McVey (pictured), chairman and chief executive officer of MarketAxess. "We are pleased with the growth that we are seeing in all of our major product areas and the momentum is building for greater electronic trading in fixed income markets."
