Global electronic trading platform Interactive Brokers has announced its revenue for the first quarter of the year. According to the broker, the reported revenue for the period was $645 million, which shows a 28% reduction year-over-year (YoY). The reported adjusted revenue came at $692 million compared to the $796 million recorded in the same period last year.

Also, the broker reported that its commission-based revenue fell by 15% to $349 million. According to Interactive Brokers, the decline in the figure is a result of an unusually active trading period last year but was helped by higher trading volumes in options and futures trading.

The Broker Also Reported A Decline In Pre-Tax Income

Interactive Brokers also announced a pre-tax income of $394 million for Q1 2022, dropping from $639 million in the previous year’s quarter.  It also recorded an adjusted figure of $441 million, as it dropped from $542 million.

Additionally, the broker realized $282 million as its net income, mainly because of a decrease in securities lending activity. However, it was aided by gains on segregated cash balances and margin lending.

In general, Interactive Brokers ended the quarter with weak earnings of $0.74 per share, which is lower than the $1.16 it realized in the same period last year. The adjusted figure was $0.82 per share compared to the $0.98 realized in Q1 2021. The broker says it will distribute a quarterly dividend of $0.10 per share.

The Broker Reported A 24% Decline In DARTs

The broker’s pre-tax profit margin dropped by 61% from the previous year’s 72% while the adjusted profit margins for Q1 2021 and  Q1 2022 were 64% and 68% respectively.

However, Interactive Brokers reported a surge in the number of new customer accounts, rising 36% to 1.81 million. Customer equity also surged by 8% to $355.9 billion. But the broker recorded a reduction in DARTs to 2.52 million, representing a 24% decline.