Brokers News

FXCM Sees 22% Jump in Revenues in 9-mo 2013

Nov 07 2013
By Maria Nikolova , Forexbrokerz.com Find me on Google+

FXCM, the major US Forex broker, has just announced its financial results for the first nine months of the year, with the figures showing a steep rise in revenues against the equivalent period a year earlier.

Net revenues for the nine-month period until the end of September 2013 amounted to $376.2 million, up by impressive 22% against the $309.2 million recorded in the equivalent period a year earlier. Profits were also robust, with adjusted pro forma net income at $50.5 million, up by 53% year-on-year.

For the third quarter, however, the results were less strong, with revenues down by 1% against the third quarter of 2012 at $113.2 million, while net income (adjusted pro forma) down by 22% at $9.7 million. The company blamed the subdued trading environment and weaker volatility for the performance. Still, FXCM's chief executive officer Drew Niv remained optimistic, stressing that the cash flow was still resilient to the negative factors. Indeed, year-to-date 2013 cash flow from operating activities rose to $140.8 million against $53.4 million in the equivalent period in 2012.

Let's also note that FXCM's net income was way higher than the $4.7 million generated by its rival Forex.com in the third quarter.

The Forex broker also reported some key operating metrics for October 2013, with institutional Forex volumes at $176 billion, a rise of 232% from October 2012, but 3% lower than in September 2013. Retail Forex volumes amounted to $315 billion, showing the opposite performance pattern: a rise of 11% month-on-month and a drop of 3% year-on-year.

The number of daily average trades by retail clients was 379,280, 11% higher than in October 2012, while the count of daily trades by institutional clients, at 29,063, also staged an year-on-year rise – of 397%. This reading is apparently reflecting the boost which FXCM's institutional segment has enjoyed lately thanks to a series of acquisitions.

You can see FXCM's press release below.

FXCM Inc. Announces Third Quarter 2013 Results

Releases October 2013 Operating Metrics

Third Quarter 2013 Summary:

Revenues of $113.2 million, a decrease of 1% versus Third Quarter 2012

Adjusted Pro Forma EBITDA of $33.0 million, a decrease of 11% versus Third Quarter 2012

Adjusted Pro Forma net income of $9.7 million or $0.13 per fully diluted share, a decrease of 22% and 24% respectively versus Third Quarter 2012

U.S. GAAP net loss attributable to FXCM Inc. of $5.1 million or $0.15 per diluted share - includes a $15.0 million reserve established for certain regulatory matters — versus net income of $4.5 million or $0.17 per diluted share in the Third Quarter 2012

Year to date 2013 cash flow from operating activities of $140.8 million versus $53.4 million in the same period 2012

October 2013 Operating Metrics Summary:

Retail customer trading volume of $315 billion, up 11% from September 2013

Institutional customer trading volume of $176 billion, down 3% from September 2013

NEW YORK--(BUSINESS WIRE)-- FXCM Inc. (NYSE: FXCM), a leading online provider of foreign exchange, or FX, trading and related services, today announced for the quarter ended September 30, 2013, revenues of $113.2 million, compared to $114.9 million for the quarter ended September 30, 2012, a decrease of 1%.

Adjusted Pro Forma EBITDA for the Third Quarter 2013 was $33.0 million, compared to $37.2 million for the Third Quarter 2012, a decrease of 11%. Adjusted Pro Forma Net Income was $9.7 million or $0.13 per share for the Third Quarter 2013, compared to $12.5 million or $0.17 per fully diluted, fully exchanged share for the Third Quarter 2012, a decrease of 22% and 24% respectively.

U.S. GAAP net loss attributable to FXCM Inc. was $5.1 million for the Third Quarter 2013 or ($0.15) per diluted FXCM Inc. Class A share, compared to net income of $4.5 million or $0.17 per diluted FXCM Inc. Class A share for the Third Quarter 2012. Third Quarter 2013 results include a $15.0 million reserve established for certain regulatory matters.

For the nine months ended September 30, 2013, revenues were $376.2 million, compared to $309.2 million for the nine months ended September 30, 2012, an increase of 22%.

Adjusted Pro Forma EBITDA for the nine months ended September 30, 2013 was $131.2 million, compared to $83.1 million for the nine months ended September 30, 2012, an increase of 58%. Adjusted Pro Forma Net Income was $50.5 million or $0.66 per fully diluted, fully exchanged share for the nine months ended September 30, 2013, compared to $32.9 million or $0.45 per fully diluted, fully exchanged share for the nine months ended September 30, 2012, an increase of 53% and 47%, respectively.

U.S. GAAP net income attributable to FXCM Inc. was $11.9 million for the nine months ended September 30, 2013 or $0.37 per diluted FXCM Inc. Class A share, compared to $6.0 million or $0.27 per diluted FXCM Inc. Class A share for the nine months ended September 30, 2012, an increase of 98%% and 37% respectively.

"Despite a muted trading environment, we are pleased to see the business still generating strong cash flow," said Drew Niv Chief Executive Officer. "Volatility declined throughout the quarter, resulting in lower trading activity, but our business is built to withstand these headwinds."

"When such market conditions occur, diversity and scale are critical. With $422 million of cash and all of our $155 million credit facility available — we have more than enough liquidity to pursue acquisitions and return capital to shareholders," he added.

Adjusted Pro Forma results assume the conversion and exchange of all FXCM Holdings, LLC Units into FXCM Inc. Class A common stock, resulting in the elimination of the non-controlling interest and the corresponding adjustment to the entity's tax provision. In addition, Adjusted Pro Forma results eliminate certain expenses not in the ordinary course of business as well as reclassifies the allocation of earnings of Lucid non-controlling members recorded as compensation expense to net income attributable to non-controlling interest.

FXCM Inc. today announced certain key operating metrics for October 2013 for its retail and institutional foreign exchange business. Monthly activities included:

October 2013 Operating Metrics

Retail Trading Metrics

Retail customer trading volume of $315 billion in October 2013, 11% higher than September 2013 and 3% lower than October 2012.

Average retail customer trading volume per day of $13.7 billion in October 2013, 1% higher than September 2013 and 3% lower than October 2012.

An average of 379,280 retail client trades per day in October 2013, 1% lower than September 2013 and 11% higher than October 2012.

Tradable accounts of 188,814 as of October 31, 2013, a decrease of 174, or flat from September 2013, and a decrease of 14,900 or 7%, from October 2012.

Institutional Trading Metrics

Institutional customer trading volume of $176 billion in October 2013, 3% lower than September 2013 and 232% higher than October 2012.

Average institutional trading volume per day of $7.7 billion in October 2013, 10% lower than September 2013 and 235% higher than October 2012.

An average of 29,063 institutional client trades per day in October 2013, 24% lower than September 2013 and 397% higher than October 2012.

About FXCM Inc.

FXCM Inc. (NYSE:FXCM) is a global online provider of foreign exchange, or FX, trading and related services to retail and institutional customers world-wide.

At the heart of FXCM's client offering is No Dealing Desk FX trading. Clients benefit from FXCM's large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. FXCM's U.K. subsidiary, Forex Capital Markets Limited, offers Contract for Difference ("CFD") products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with FX on one platform. In addition, FXCM offers educational courses on FX trading and provides free news and market research through DailyFX.com.

TAGS: fxcm fxcm forex broker fxcm us broker fxcm operating results fxcm financial metrics fxcm third quarter fxcm revenues fxcm profit forex retail volumes institutional trading volumes q3 2013 forex trading

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