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FXCM Reports 53% Increase in Forex Revenues, Plans Future Acquisitions

Aug 07 2013
By
Forexbrokerz.com

FXCM's operational results for the second quarter of the year have just been announced and as usual, the broker follows a steady path up, up and above: revenues skyrocket, trading volumes have reached a new all-time high. 

 
In Q2 of 2013 the company registered revenues of $140.1 million – 53% more than the profit it generated in the second quarter of 2012. This impressive growth is hardly a surprise for anyone; after all, the broker hasn't reported bad results in a really, really long time. Instead of laying back and enjoying its success, though, FXCM has constantly been improving its services to keep its traders happy – and successfully so, as we can see from a recent survey, which isolated the company as America's most favorite broker. 
 
Along with Q2 metrics, the brokerage gave us details about its performance in July – and judging by that, Q3 will be impressive too. This past month, a total of $573 billion was traded with FXCM - $388 billion by retail traders, and $185 by institutional clients. The number of active tradable accounts and the average number of trades per day are also up. 
 
FXCM's management seems to be quite pleased with the results and gave us a hint on what lies in the broker's future: acquisitions. Earlier this year it failed get its hands over Forex.com, but apparently FXCM hasn't given up on growing through acquiring other companies. "We now have $374 million of cash and are undrawn on our $155 million credit facility — leaving us with plenty of liquidity to pursue acquisitions," said Drew Niv, the broker's CEO in a the press announcement. 
 
At this point it is hard to say which will be the next firm engulfed by the forex giant, but we will definitely keep our ears to the ground and will report any news on this. 
 
 

FXCM Inc. Announces Second Quarter 2013 Results Releases July 2013 Operating Metrics

Revenues up 53% on Record Quarterly Retail and Institutional Volume of $1.7 trillion
Pro Forma EBITDA up 159% and Pro Forma EPS up 182%
 
Second Quarter 2013 Highlights:
- Revenues of $140.1 million, up 53% versus the same period in 2012
- U.S. GAAP net income attributable to FXCM Inc. of $10.1 million or $0.32 per fully diluted share
- Adjusted Pro Forma EBITDA of $54.5 million, up 159% versus the same period in 2012
- Adjusted Pro Forma net income of $23.3 million or $0.31 per fully diluted share up 196% and 182%, respectively, versus the same period in 2012
 
July 2013 Operating Metrics Highlights:
 
- Retail customer trading volume of $388 billion — third highest in FXCM's history
- Institutional customer trading volume of $185 billion — second highest in FXCM's history
 
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 June 30, 2013, revenues of $140.1 million, compared to $91.7 million for the quarter ended June 30, 2012, an increase of 53%. U.S. GAAP net income attributable to FXCM Inc. was $10.1 million for the Second Quarter 2013 or $0.32 per fully diluted FXCM Inc. Class A share, compared to a loss of $1.4 million or $0.06 per FXCM Inc.Class A share for the Second Quarter 2012.
 
Adjusted Pro Forma EBITDA for the Second Quarter 2013 was $54.5 million, compared to $21.0 million for the Second Quarter 2012, an increase of 159%. Adjusted Pro Forma Net Income was $23.3 million or $0.31 per share for the Second Quarter 2013, compared to $7.9 million or $0.11 per fully diluted, fully exchanged share for the Second Quarter 2012, an increase of 196% and 182% respectively.
 
For the six months ended June 30, 2013, revenues were $263.0 million, compared to $194.3 million for the six months endedJune 30, 2012, an increase of 35%. U.S. GAAP net income attributable to FXCM Inc. was $17.0 million for the six months endedJune 30, 2013 or $0.55 per fully diluted FXCM Inc. Class A share, compared to $1.4 million or $0.07 per FXCM Inc. Class A share for the six months ended June 30, 2012.
 
Adjusted Pro Forma EBITDA for the six months ended June 30, 2013 was $98.3 million, compared to $45.9 million for the six months ended June 30, 2012, an increase of 114%. Adjusted Pro Forma Net Income was $40.8 million or $0.54 per share for the six months ended June 30, 2013, compared to $20.4 million or $0.28 per fully diluted, fully exchanged share for the six months ended June 30, 2012, an increase of 100% and 93%, respectively.
 
"FXCM turned in one of its best quarters with record revenues and our second highest EBITDA ever — only slightly below the fourth quarter of 2008, when volatility spiked to levels more than double what we saw in the second quarter," said Drew Niv, Chief Executive Officer. "We have expanded the scale of our business to the point that we were able to deliver outstanding results in a much more moderate climate."
 
"We now have $374 million of cash and are undrawn on our $155 million credit facility — leaving us with plenty of liquidity to pursue acquisitions," 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 non-recurring charges and equity based compensation expense regarding a grant of stock options at the time of FXCM's initial public offering ("IPO") in December 2010 and 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 July 2013 for its retail and institutional foreign exchange business. Monthly activities included:
 
July 2013 Operating Metrics
 
Retail Trading Metrics
 
- Retail customer trading volume(1) of $388 billion in July 2013, 2% lower than June 2013 and 35% higher than July 2012.
- Average retail customer trading volume(1) per day of $16.9 billion in July 2013, 17% lower than June 2013 and 30% higher than July 2012.
- An average of 456,044 retail client trades per day in July 2013, 22% lower than June 2013 and 28% higher than July 2012.
- Tradable accounts(2) of 194,519 as of July 30, 2013, an increase of 3,521, or 2% from June 2013, and a decrease of 12,226 or 6%, from July 2012.
 
Institutional Trading Metrics
 
- Institutional customer trading volume(1) of $185 billion in July 2013, 1% higher than June 2013 and 208% higher than July 2012.
- Average institutional trading volume(1) per day of $8 billion in July 2013, 13% lower than June 2013 and 196% higher thanJuly 2012.
- An average of 44,139 institutional client trades per day in July 2013, 8% higher than June 2013 and 604% higher than July 2012.
- "July continued the strong trading environment of the Second Quarter," continued Niv. "We are pleased to report near-record levels in most of our key operating metrics."
 
 

About FXCM Inc.

 
FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers world-wide.
 
At the heart of FXCM's client offering is No Dealing Desk forex 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, also offers CFD products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with forex on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
TAGS: FXCM  forex trading  forex metrics  trading volumes  retail forex  institutional forex  Drew Niv  acquisition  Forex.com 

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