Financial services firm Investors Capital has reported a 11% increase in its revenue to US$23.08 million for the first quarter of 2013, compared to US$20.8 million for the same period in 2012.
The company said that the revenue increased due to growth of both commissions and advisory fees organically through its practice management initiatives, with new financial advisors and improved financial market conditions.
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Investors Capital posted a net loss of US$0.36 million for the quarter, compared to a net income of US$0.26 million for the same period last year.
Operating loss was US$0.67 million for the quarter, compared to an operating income of $0.45 million in the year ago period.
Commission revenue rose 12.8% to US$18.14 million in Q2, compared to US$16.09 million in the last year’s second quarter, due to an increase in direct business from improved market conditions as well as new business from new advisors.
Advisory fee revenue grew 8.1% to US$4.44 million from US$4.11 million in the prior period due to improvements in financial markets.
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By GlobalDataThe firm’s average revenue per representative, based on a rolling 12-month period, rose at the end of the first quarter to new all-time high of US$193,153, an increase of 13.7% over US$169,934 for the prior rolling 12-month period.
Timothy Murphy Investors Capital president and CEO said: "We’re seeing the fruits of recruiting and retaining high-quality advisors as well as the benefits that come from implementing strategic, organic growth initiatives.
"While pleased with our top-line growth, we are still challenged by the continued costs of product litigation and settlements, which have significantly impacted our operating and net income results for several reporting periods.
"Management’s strategy for resolving these cases and stemming related costs are essential to improving our operating and net income results going forward," Murphy added.
