On Thursday Gain Capital (a.k.a Forex.com) reported key financial metrics for Q1 – Q3 of 2106 and for October alone. According to the reports, overall October was not very good for the brokerage, however, it turned to a consolidated net profit of $14.5 million in the January-September 2016 period from a net loss of $700,000 a year earlier. As a result, Gain Capital Holdings (NYSE:GCAP) saw its stock jump by more than 10% on Friday.
Source: Google Finance
The accounts also show that consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the nine months increased by 6.1% to $62.7 million.
Meanwhile, in the third quarter alone, Gain Capital generated a net revenue from retail operations of $52.7 million and a profit of $6.5 million. In the institutional segment, net revenue amounted to $6.9 million and profit was $1 million in July-September.
“The challenging market conditions of the third quarter resulted in lower than expected average daily volumes and revenue capture,” commented Glenn Stevens, CEO of GAIN Capital. “However, the volatility outlook is improving as a result of several market drivers including Brexit, global interest rate uncertainty and the US elections,” he added.
Furthermore, according to the monthly report of the company, the total OTC trading volume in October amounted to $190.9 billion – down 8.2% from September and 34.8% from October 2015. In fact, this is the lowest monthly trading volume of the broker since December 2013.
In October, the company also saw its stock price fall to a 52-week low of $5.16 on October 25 and even slid below $5, to $4.59 on October 31. On Friday, however Gain Capital’s stocks seems to recover, as it increased by more than 13% and currently amounts to around $5.18.
Established in 2003, Gain Capital Group is now active in North America, Europe and the Asia Pacific regions, serving both retail and institutional clients under the trading brands Forex.com, City Index, GTX, and Gain Capital.
New Jersey-based broker offers trading in forex, commodities, and global equities. Its largest retail forex broker, Forex.com, also offers white label solutions for other forex brokers, operating throughout the world.