Interactive Brokers

REPORTS PRO FORMA INCOME BEFORE TAXES AND MINORITY INTEREST OF $931.6 MILLION ON $1,468.2 MILLION IN NET REVENUES, EARNINGS PER SHARE OF $1.59

Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated global electronic market maker and broker, today reported pro forma diluted earnings per share of $1.59 for the year ended December 31, 2007, compared to pro forma $1.22 for the same period in 2006.

Net revenues were $1,468.2 million and income before income taxes and minority interest was $931.6 million for the year, compared to net revenues of $1,252.4 million and income before income taxes of $761.4 million in 2006.

• Earnings per share increased by 30.3% from the prior year and 58.6% from the year ago quarter.
• 63.5% pre-tax margin for 2007 and 67.6% pre-tax margin for the 4th quarter.
• Market Making pre-tax income grew 8.6% from the prior year and 45.4% from the year ago quarter.
• 69.8% Market Making pre-tax margin for 2007 and 73.2% pre-tax margin for the 4th quarter.
• Electronic Brokerage pre-tax income up 100.7% from the prior year and 194.3% from the year ago quarter.
• 46.5% Electronic Brokerage pre-tax margin in 2007 and 52.5% pre-tax margin for the 4th quarter.
• Cleared DARTs increased to 259,000, or 64.1%, from the year ago quarter.
  

"2007 has been our best year, an all time record for us, both in our brokerage and in our market making businesses, as both segments benefited from increased volatility and trading volumes in the exchange-listed derivatives space," said Thomas Peterffy, Chairman and CEO. "In our brokerage business we were able to achieve a 100% pretax income growth for the year, resulting in our brokerage income rising to 21% of the total in 2007 and 23% of the total in the fourth quarter of 2007 vs. 13% for the full year and the fourth quarter of 2006. As the credit crises unfolded during the course of the year, more and more market participants came to realize the importance of the safety provided by clearing houses for exchange-traded contracts as opposed to OTC products.

"We believe that this trend was in part responsible for the growth in exchange volumes and it will continue for the foreseeable future, driving further growth for our business. Our primary focus in the past year has been on growing our cleared options business. We developed the best order-routing and trading technology in the industry and were rewarded for our efforts by a 94% increase in our cleared options volume from the year ago quarter.

"In our market making business we succeeded in overcoming some setbacks in the early part of the year and finished with an 8.6% increase in pretax earnings over 2006.

"We continue to place great emphasis on gaining efficiency through the use of automation across all of our businesses. This strategy has resulted in our pretax profit margin climbing to 63.5% in 2007 from 60.8% in 2006."