Exhibit 99.1
INTERACTIVE BROKERS GROUP ANNOUNCES 1Q2013 RESULTS

— — —

REPORTS COMPREHENSIVE EARNINGS PER SHARE OF $0.06, INCOME BEFORE TAXES OF $82 MILLION ON $216 MILLION IN NET REVENUES AND EARNINGS PER SHARE ON NET INCOME OF $0.14;
 
 
DECLARES QUARTERLY DIVIDEND OF $0.10 PER SHARE.


GREENWICH, CONN, April 16, 2013 — Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated global electronic broker and market maker, today reported diluted earnings per share on a comprehensive basis of $0.06 for the quarter ended March 31, 2013, compared to diluted earnings per share on a comprehensive basis of $0.33 for the same period in 2012.

On a non-comprehensive basis, which excludes the effect of changes in the U.S. dollar value of the Company’s non-U.S. subsidiaries, the Company reported diluted earnings per share on net income of $0.14 for the quarter ended March 31, 2013, compared to diluted earnings per share of $0.27 for the same period in 2012.

Net revenues were $216 million and income before income taxes was $82 million for this quarter, compared to net revenues of $304 million and income before income taxes of $150 million for the same period in 2012.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share.  This dividend is payable on June 14, 2013 to shareholders of record as of May 31, 2013.


Business Highlights

·  
38% pretax profit margin for this quarter.
·  
57% Electronic Brokerage pretax profit margin for this quarter.
·  
Customer equity grew 23% from the year-ago quarter to $35.6 billion and customer debits increased by 32%, to $11.1 billion.
·  
Customer accounts grew 11% from the year-ago quarter to 217 thousand.
·  
Cleared DARTs increased 8% from the year-ago quarter to 422 thousand.
·  
Brokerage segment equity surpassed $2 billion.  Total equity was $4.83 billion.




 
1
 

Segment Overview

Electronic Brokerage
Electronic Brokerage segment income before income taxes increased 33%, to $111 million, in the quarter ended March 31, 2013 compared to the same period last year.  Commissions and execution fees increased 19% from the year-ago quarter, reflecting growth in customer accounts and larger average trade sizes.  Net interest income grew 26% from the year-ago quarter, to $54 million in this quarter.  Pretax profit margin was 57% for this quarter, up from 52% in the same period last year.

Total DARTs for cleared and execution-only customers increased 9% to 465,000 from the year-ago quarter.  Cleared DARTs were 422,000 in this quarter, 8% higher than the same period last year.  Customer accounts grew 11% to 217,000 from the year-ago quarter.  Customer equity increased 23%, to $35.6 billion, from the year-ago quarter.  Customer margin borrowings were $2.7 billion higher than at the same time last year, ending the quarter at $11.1 billion.


Market Making
Market Making segment income before income taxes decreased to a $29 million loss, for the quarter ended March 31, 2013 from a $66 million gain for the same period in 2012.  Removing the effects of currency translation, the Market Making segment produced a $32 million gain in this quarter, compared to a $67 million gain for the same period last year.  Decrease in profit was driven by an unfavorable market making environment with low volatility, one-directional market movement, and tight bid/offer spreads.  The CBOE Volatility Index, or VIX, was at the lowest level in recent history this quarter.

Currency translation loss was $61 million in this quarter, compared to a $1 million loss in the year-ago quarter.


Effects of Foreign Currency Diversification
In connection with our currency strategy, we have determined to base our net worth in GLOBALs, a basket of 16 major currencies in which we hold our equity.  In this quarter, our currency hedging program decreased our comprehensive earnings by $92 million, as the U.S. dollar value of the GLOBAL decreased by approximately 1.9%.  The effects of currency hedging are reported as components of (1) Market Making Trading Gains and (2) Other Comprehensive Income (“OCI”).  In this quarter two-thirds of the GLOBAL effect was captured in Market Making Trading Gains in the Net Income section of the Statement of Comprehensive Income, with the remainder reported as OCI in the separate Comprehensive Income section of the Statement of Comprehensive Income.


 
 
 
(1)
Daily average revenue trades (DARTs) are based on customer orders.
 
 

 

 
2
 

 
_____________________
 


Conference Call Information:
Interactive Brokers Group will hold a conference call with investors today,  April 16, 2013, at 4:30 p.m. ET to discuss its quarterly results.  Investors who would like to listen to the conference call live should dial 877-324-1965 (U.S. domestic) and 631-291-4512 (international). The number should be dialed approximately ten minutes prior to the start of the conference call.  Ask for the “Interactive Brokers Conference Call.”
 
The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.
 

About Interactive Brokers Group, Inc.:
Interactive Brokers Group, Inc., together with its subsidiaries, is an automated global electronic broker that specializes in catering to financial professionals by offering state-of-the-art trading technology, superior execution capabilities, worldwide electronic access, and sophisticated risk management tools at exceptionally low costs.  The brokerage trading platform utilizes the same innovative technology as the Company’s market making business, which specializes in routing orders and executing and processing trades in securities, futures, foreign exchange instruments, bonds and funds on more than 100 electronic exchanges and trading venues around the world.  As a market maker, we provide liquidity at these marketplaces and, as a broker, we provide professional traders and investors with electronic access to stocks, options, futures, forex, bonds and mutual funds from a single IB Universal AccountSM.  Employing proprietary software on a global communications network, Interactive Brokers is continuously integrating its software with a growing number of exchanges and trading venues into one automatically functioning, computerized platform that requires minimal human intervention.

Cautionary Note Regarding Forward-Looking Statements:
The foregoing information contains certain forward-looking statements that reflect the company's current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the company on the date of this release. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.

For Interactive Brokers Group, Inc. Media: Caitlin Duffy, 203-913-1369 or Investors: Deborah Liston, 203-618-4070.

 
3
 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA



TRADE VOLUMES:
              
(in 000's, except %)
    
Brokerage
 
      
 
Market
  
Brokerage
 
Non
      
Avg. Trades
 
Making
%
Cleared
%
Cleared
%
Total
%
per U.S.
Period
Trades
Change
Trades
Change
Trades
Change
Trades
Change
Trading Day
2009
             93,550
  
     127,338
  
       13,636
  
     234,524
  
                 934
2010
             75,169
-20%
     133,658
5%
       18,732
37%
     227,559
-3%
                 905
2011
             63,602
-15%
     160,567
20%
       19,187
2%
     243,356
7%
                 968
2012
             60,421
-5%
     150,000
-7%
       16,118
-16%
     226,540
-7%
                 904
                   
1Q2012
             15,045
  
       37,521
  
         4,826
  
       57,392
  
                 926
1Q2013
             16,567
10%
       39,576
5%
         4,350
-10%
       60,493
5%
             1,008
                   
 
CONTRACT AND SHARE VOLUMES:
    
(in 000's, except %)
          
             
TOTAL
Options
%
Futures*
%
Stocks
%
Period
(contracts)
Change
(contracts)
Change
(shares)
Change
2009
     643,380
  
       82,345
  
    75,449,891
  
2010
     678,856
6%
       96,193
17%
    84,469,874
12%
2011
     789,370
16%
     106,640
11%
    77,730,974
-8%
2012
     698,140
-12%
       98,801
-7%
    65,872,960
-15%
             
1Q2012
     180,786
  
       21,690
  
    17,862,025
  
1Q2013
     167,090
-8%
       28,563
32%
    21,654,862
21%
             
             
MARKET MAKING
Options
%
Futures*
%
Stocks
%
Period
(contracts)
Change
(contracts)
Change
(shares)
Change
2009 **
     428,810
  
       15,122
  
    26,205,229
  
2010 **
     435,184
1%
       15,371
2%
    19,165,000
-27%
2011 **
     503,053
16%
       15,519
1%
    11,788,769
-38%
2012 **
     457,384
-9%
       12,660
-18%
      9,339,465
-21%
             
1Q2012 **
     118,438
  
         2,828
  
      2,138,451
  
1Q2013 **
     106,840
-10%
         4,352
54%
      2,991,476
40%
             
             
BROKERAGE TOTAL
Options
%
Futures*
%
Stocks
%
Period
(contracts)
Change
(contracts)
Change
(shares)
Change
2009
     214,570
  
       67,223
  
    49,244,662
  
2010
     243,672
14%
       80,822
20%
    65,304,874
33%
2011
     286,317
18%
       91,121
13%
    65,942,205
1%
2012
     240,756
-16%
       86,141
-5%
    56,533,495
-14%
             
1Q2012
       62,348
  
       18,862
  
    15,723,574
  
1Q2013
       60,250
-3%
       24,211
28%
    18,663,386
19%
 

* Includes options on futures
** In Brazil, an equity option contract typically represents 1 share of the underlying stock; however, the typical minimum
trading quantity is 100 contracts. To make a fair comparison to volume at other exchanges, we have adopted a policy
of reporting Brazilian equity options contracts divided by their trading quantity of 100.
 
 
4
 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA, CONTINUED



BROKERAGE CLEARED
Options
%
Futures*
%
Stocks
%
Period
(contracts)
Change
(contracts)
Change
(shares)
Change
2009
       93,868
  
       66,241
  
    46,627,344
  
2010
     103,054
10%
       79,144
19%
    62,077,741
33%
2011
     145,993
42%
       89,610
13%
    63,098,072
2%
2012
     144,539
-1%
       84,794
-5%
    54,371,351
-14%
             
1Q2012
       33,377
  
       18,646
  
    15,115,753
  
1Q2013
       41,850
25%
       23,757
27%
    17,868,548
18%
             
* Includes options on futures
        


BROKERAGE STATISTICS
      
(in 000's, except % and where noted)
    
 
1Q2013
1Q2012
% Change
   Total Accounts
                                                                    217
                            195
11%
   Customer Equity (in billions) *
$35.6
$28.9
23%
       
   Cleared DARTs
                                                                    422
                            391
8%
   Total Customer DARTs
                                                                    465
                            428
9%
       
       
       
Cleared Customers (in $'s, except DART per account)
    
   Commission per DART
$4.61
$4.01
15%
   DART per Avg. Account (Annualized)
                                                                    496
                            511
-3%
   Net Revenue per Avg. Account (Annualized)
$3,741
$3,240
15%
       
* Excludes non-customers
      
 


 
5
 


INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
SEGMENT FINANCIAL INFORMATION
(UNAUDITED)
 

 
     
Three Months
  
     
 Ended March 31,
  
     
2013
    
2012
  
     
(in millions)
  
               
Electronic Brokerage
Net revenues
  
$195.3
    
$159.3
  
 
Non-interest expenses
  
84.3
    
75.9
  
               
 
Income (loss) before income taxes
  
$111.0
    
$83.4
  
               
 
Pre-tax profit margin
  
57
 %  
52
 % 
               
Market Making
Net revenues
  
$23.6
    
$142.4
  
 
Non-interest expenses
  
52.6
    
76.4
  
               
 
Income (loss) before income taxes
  
($29.0
 )  
$66.0
  
               
 
Pre-tax profit margin
  
-123
 %  
46
 %
               
Corporate*
Net revenues
  
($2.8
 )   
$2.2
  
 
Non-interest expenses
  
(3.0
 )  
1.9
  
               
 
Income (loss) before income taxes
  
$0.2
    
$0.3
  
               
               
Total
Net revenues
  
$216.1
    
$303.9
  
 
Non-interest expenses
  
133.9
    
154.2
  
               
 
Income (loss) before income taxes
  
$82.2
    
$149.7
  
               
 
Pre-tax profit margin
  
38
 %  
49
 % 
               
               
*  Corporate includes corporate related activities as well as inter-segment eliminations.
        


 
6
 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
 

       
Three Months
       
 Ended March 31,
       
2013
    
2012
       
(in millions, except share and per share data)
               
Revenues:
          
 
Trading gains
  
$19.0
    
$137.3
 
Commissions and execution fees
  
119.6
    
100.9
 
Interest income
  
70.5
    
66.6
 
Other income
  
19.9
    
18.3
               
   
Total revenues
  
229.0
    
323.1
               
 
Interest expense
  
12.9
    
19.2
               
   
Total net revenues
  
216.1
    
303.9
               
Non-interest expenses:
          
 
Execution and clearing
  
59.5
    
64.6
 
Employee compensation and benefits
  
46.3
    
62.7
 
Occupancy, depreciation and amortization
  
10.1
    
9.9
 
Communications
  
5.5
    
5.7
 
General and administrative
  
12.5
    
11.3
               
   
Total non-interest expenses
  
133.9
    
154.2
               
Income before income taxes
  
82.2
    
149.7
               
Income tax expense
  
6.9
    
8.7
               
Net income
  
75.3
    
141.0
               
Net income attributable to noncontrolling interests
  
68.7
    
129.9
               
Net income (loss) attributable to common stockholders
  
$6.6
    
$11.1
               
               
Earnings (loss) per share:
          
 
Basic
  
$0.14
    
$0.27
 
Diluted
  
$0.14
    
$0.27
               
Weighted average common shares outstanding:
          
 
Basic
  
47,499,898
    
45,576,925
 
Diluted
  
47,688,314
    
45,951,464
               
Comprehensive income:
          
 
Net income (loss) attributable to common stockholders
  
$6.6
    
$11.1
 
Other comprehensive income:
          
   
Cumulative translation adjustment, before income taxes
  
(3.8
 )   
4.1
   
Income taxes related to items of other comprehensive income
  
0.0
    
1.5
 
Other comprehensive income (loss), net of tax
  
(3.8
 )  
2.6
Comprehensive income (loss) attributable to common stockholders
  
$2.8
    
$13.7
               
Comprehensive income attributable to noncontrolling interests:
          
 
Net income attributable to noncontrolling interests
  
68.7
    
$129.9
  Other comprehensive income (loss) - cumulative translation adjustment
(27.6
 )  
31.6
Comprehensive income attributable to noncontrolling interests
  
$41.1
    
$161.5



 
7
 
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
EARNINGS PER SHARE ON COMPREHENSIVE INCOME
(UNAUDITED)
 

 
     
Three Months
     
 Ended March 31,
     
2013
    
2012
     
(in millions, except share and per share data)
             
             
Net income (loss) attributable to common stockholders
$6.6
    
$11.1
Add (deduct) net income attributable to non-fair value redemption rights
0.0
    
1.2
             
Net income (loss) available for common stockholders
$6.6
    
$12.3
             
Other comprehensive income:
        
 
Cumulative translation adjustment, before income taxes
(3.8
 )   
4.1
 
Income taxes related to items of other comprehensive income
0.0
    
1.5
Other comprehensive income (loss), net of tax
(3.8
 )  
2.6
             
Comprehensive income (loss) available for common stockholders
$2.8
    
$14.9
             
             
Comprehensive income (loss) per share:
        
 
Basic
$0.06
    
$0.33
 
Diluted
$0.06
    
$0.33
             
Weighted average common shares outstanding:
        
 
Basic
47,499,898
    
45,576,925
 
Diluted
47,688,314
    
45,951,464




 
8
 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
 


   
March 31, 2013
  
December 31, 2012
   
(in millions)
         
Assets
      
Cash and cash equivalents
$1,184.9
  
$1,614.6
Cash and securities - segregated for regulatory purposes
12,504.9
  
12,482.4
Securities purchased under agreements to resell
461.9
  
428.9
Securities borrowed
3,740.4
  
2,833.1
Trading assets, at fair value
4,662.3
  
4,544.7
Receivables from customers, net of allowance
11,184.1
  
9,851.0
Receivables from brokers, dealers and clearing organizations
807.6
  
844.6
Other assets
597.9
  
600.2
         
 
Total assets
$35,144.0
  
$33,199.5
         
Liabilities and equity
      
         
Liabilities
      
Trading liabilities - financial instruments sold but not yet purchased, at fair value
$4,367.4
  
$4,286.3
Securities loaned
2,198.8
  
1,839.3
Short-term borrowings
18.8
  
110.4
Other payables:
      
 
Customers
23,060.9
  
21,422.0
 
Brokers, dealers and clearing organizations
311.9
  
361.8
 
Other payables
360.3
  
366.6
   
23,733.1
  
22,150.4
         
Senior notes payable and senior secured credit facility
0.0
  
0.0
         
Equity
      
Stockholders' equity
597.5
  
598.5
Noncontrolling interests
4,228.4
  
4,214.6
 
Total equity
4,825.9
  
            4,813.1
         
 
Total liabilities and equity
$35,144.0
  
$33,199.5

9