Instinet Loses $34.7 Million in Quarter
By BLOOMBERG NEWS
nstinet Group Inc., the electronic stock-trading network, said yesterday that it lost $34.7 million in the first quarter after it cut prices twice amid a battle for market share.
Instinet, a unit of Reuters Group P.L.C., posted a net loss of 14 cents a share compared with net income of $50.1 million, or 24 cents a share, in the period a year earlier. Excluding one-time investment loss, good will costs and a $15 million pretax restructuring charge related to layoffs, Instinet lost $3.4 million, or 1 cent a share.
Instinet shares have fallen 31 percent this year as competition prompted a price war between Instinet and the rival Island ECN. Instinet has been trying to regain its position as the No. 1 electronic trader of Nasdaq shares, which it lost to Island in November.
Instinet's share of Nasdaq trading fell to 11 percent from 15 percent a year earlier.
Instinet said it also expected to take a charge of $40 million in the second quarter and would close its fixed-income electronic brokerage business to save the company $37 million a year.
Revenue fell 37 percent, to $270 million, as fees from trading fell 36 percent, to $267 million. Prices dropped an average of 18 percent in the quarter.
Shares of Instinet fell 19 cents yesterday, to $6.92. |
