ITG’s US business performance prompts group quarterly loss

ITG sees quarterly loss, amid revenue declines in its US business and large settlement costs.

ITG’s North American revenues plummeted 19% in the second quarter this year, as the agency broker reported a group GAAP net loss of $5.2 million.

US revenues fell from $92.2 million in the second quarter in 2015, to $74.4 million in the same three-month period this year, resulting in a net loss of $500,000.

The regional sales were hit by the sale of ITG’s energy research operations in December 2015, and the sale of the remaining investment research operations in May 2016.

Settlement costs and legal fees also affected the overall loss, as the firm’s former chief executive - Bob Gasser - sought $13 million in compensation last year, claiming the firm ‘forced him out’ amid a dark pool probe.

European and Asia-Pacific revenues fell slightly in the second quarter this year compared to last year, from $48.1 million to $43.5 million.

Frank Troise, ITG’s chief executive officer said: “Over the last several months, we have conducted an end-to-end business review and developed a plan to grow our revenues and expand our margins.”

Speaking to The Trade earlier this month, Troise said a number of trends developing around the world could become positives for ITG.

He said the focus among asset managers on improved measurement of trade performance and separation of research and execution commission dollars is something that ITG can take advantage of globally.

Troise also highlighted that the firm has recently been disposing of non-core businesses, including completely exiting research, as part of its new strategy.

Read our recent interview with Frank Troise here.