Interactive Brokers Revenue Drops 15% as Trading Slows

(Bloomberg) -- Interactive Brokers Group Inc. reported a 15% decline in third-quarter net revenue as trading activity moderated from earlier in the year.

Net revenue totaled $464 million, the Greenwich, Connecticut-based company said Tuesday in a statement. Adjusted revenue of $650 million beat the $640 million average estimate of analysts surveyed by Bloomberg. 

Average daily trades totaled 2.3 million, up 24% from the third quarter of 2020. But that increase is smaller than gains Interactive Brokers saw in the first half of 2021. Average daily trades surged 128% in the first quarter from a year earlier and 32% in the second quarter.  

Interactive Brokers, founded by billionaire Thomas Peterffy, posted third-quarter net income of $206 million, or 43 cents a share. Adjusted earnings per share were 78 cents, 2 cents more than the average Wall Street estimate. 

Shares of the firm slid 1% to $73 in extended trading at 4:47 p.m. in New York. The stock had gained 21% this year through the close of regular trading Tuesday.

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