Virtu Financial, Inc (VIRT) has reported 42.91 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $7.03 million, or $0.18 a share in the quarter, compared with $12.31 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $27.34 million, or $0.20 a share compared with $55.20 million or $0.40 a share, a year ago. 

Revenue during the quarter dropped 23.63 percent to $164.81 million from $215.80 million in the previous year period. Total expenses were 77.02 percent of quarterly revenues, up from 63.43 percent for the same period last year. That has resulted in a contraction of 1359 basis points in operating margin to 22.98 percent.

Operating income for the quarter was $37.87 million, compared with $78.92 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $56.94 million compared with $100.71 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1212 basis points in the quarter to 34.55 percent from 46.67 percent in the last year period.  

"Except for the initial surge at the beginning of this quarter in post-Brexit trading activity, the markets we participate in were quiet throughout the balance of the quarter. Market volumes were muted and realized volatility has been at historic lows, reducing the opportunity for a market maker to earn spread, which is the core of our model. Despite these challenges, given our broad diversification and focus on expense management, our business was solidly profitable in the third quarter, producing strong margins and enabling us to continue to return capital to our investors. We are optimistic that when volumes and volatility return, Virtu is poised to generate strong performance given our global market presence and disciplined market making model," said Douglas Cifu, chief executive officer of Virtu Financial.