KCG First Quarter Profit Surges to $36.9 Million

0
117

KCG First Quarter Profit Surges to $36.9 MillionFinancial services firm KCG saw its net income in the first quarter surge to $36.9 million, or $0.31 per diluted stock.

The pre-tax profit from its continuing operations over the period was $59.4 million. This figure was $57.6 million if the profit of $1.8 million earned from investment appreciation net of asset writedowns. The $1.8 million gain was earned from combined revenue of $9.6 million from its investments in Direct Edge Holdings LLC and BATS Global Markets, and a $7.6 million writedowns in capitalized debt and lease costs.

The company also revealed in a statement released on its website that its consolidated revenue surged 19 percent in the first quarter to $384 million, up from $323 million in the previous quarter. Its Market Making unit saw revenues advance 19 percent while pretax profit rose 59 percent from the last three months of 2013.

**relatedarticle**

The Market Making unit earned combined revenues of $277.3 million and pretax profit of $76.0 million, up from revenue of $232.5 million and pretax profit of $48 million in the fourth quarter 2013.

“During the first quarter, KCG began to demonstrate the potential earnings power of our model. We apply advanced technologies to market making, agency execution and trading venues in order to serve clients, attain scale and drive margin expansion. As integration activities subside, we’re devoting greater attention to organic growth opportunities from core capabilities. The revenue and margin improvement during the first quarter reflects progress to date in enhancing core capabilities as well as reducing the cost structure,” said Daniel Coleman, KCG’s Chief Executive Officer.

To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com