Knight Capital Group, Inc. (NYSE: KCG) today reported a net loss of $9.4 million, or $0.03 per diluted share, for the first quarter of 2013.
The net loss includes net income from continuing operations of $11 million, as well as a net loss from discontinued operations of $20.4 million, or a loss of $0.06 per diluted share.
Revenues for continuing operations for the first quarter of 2013 were $285.2 million, compared to $302.5 million for the first quarter of 2012.
“During the first quarter, revenues from continuing operations were strong despite a decline in consolidated U.S. equity volume year over year and the lowest quarterly market volatility in more than five years,” said Thomas M. Joyce, chairman and CEO of Knight Capital Group.
In the first quarter of 2013, Knight’s Global Execution Services segment generated total revenues of $122.4 million and pre-tax income of $10.7 million.
Earnings from these segments were down from year-ago levels, where Knight reported total revenues of $140.3 million and a pre-tax income of $23.8 million.
The results were impacted by a decline in client volumes as compared to the first quarter of 2012, the company said, as well as a $4.4 million in additional expenses related to workforce reductions—specifically, those associated with the combination of the full service and electronic institutional equities sales teams.
These decreases were offset by increased earnings coming from the company’s reverse mortgage business Urban Financial Group, the company said.
“Urban made a strong contribution from origination and securitization activities,” said Joyce.
Financial results from continuing operations for the segment, Knight said is worth noting, included additional expenses to the consolidation of institutional equities sales.
Written by Jason Oliva