de | cn | ru

Brokers News

GAIN Capital reports net revenue of $111.6 million, up 60% YoY

GAIN Capital Holdings, Inc. (NYSE: GCAP), owner of the retail forex broker Forex.com, today reported financial results for Q2 2015. After announcing record forex trading volumes in June, now the US headquartered broker reports net revenue of $111.6 million, up 60% from Q2 2014.
 
 
Second Quarter Highlights
 
Net revenue of $111.6 million, up 60%
Net income of ($8.8) million, compared to ($5.2) million
Adjusted EBITDA1 of $9.2 million, compared to ($1.5) million
Earnings per diluted share of ($0.23), compared to ($0.13)
Cash earnings per diluted share1 of $0.06, up from a loss of ($0.05)
 
GAIN Capital Holdings, Inc. ("GAIN") (NYSE: GCAP), a leading global provider of online trading services, announced financial results for the second quarter and first half of 2015.
 
"In our first quarter following the acquisition of City Index, I am very pleased by the significant progress we have made integrating the two companies," stated Glenn Stevens, CEO of GAIN Capital.  "We remain confident in our ability to achieve $45-55 million in cost synergies and are currently tracking to the high end of the range.  In addition to integration-related cost initiatives, we have made strong progress in reducing our core fixed operating expenses, which decreased 4% and 7% from the first quarter 2015 and the second quarter 2014, respectively," continued Mr. Stevens.
 
"Aside from executing on our integration and cost-cutting plans, we have continued to increase the overall scale of our businesses and experienced near record levels of trading volume, active accounts and customer assets in the second quarter," added Mr. Stevens.  "With our scale – pro forma2 revenue and adjusted EBITDA1 of $539.2 million and $111.3 million respectively, and 157,000 active accounts3 – broad geographic reach and strong brand presence, we are in an enviable position as one of the largest providers in our industry.  We also continue to successfully diversify our product and revenue mix, with approximately 63% of retail trading volume coming from FX and the remaining 37% from equities, indices, commodities and other non-FX products, compared to 75% and 25%, respectively, a year ago.   Revenue capture was solid in FX and most other product areas, but we experienced unusually adverse trading conditions across indices, which resulted in approximately $20 million4 lower than normal net revenue for the quarter," added Mr. Stevens.
 
"Our institutional business continues to perform well and contributes attractive, commission-based revenues to our results.  With the several recent institutional ECN transactions in this space clearly demonstrating the market's enthusiasm for these businesses, we are excited to continue to leverage our distinctive technology and take market share from our competitors," Mr. Stevens concluded.
 
Second Quarter Highlights
(Comparisons are to the second quarter of 2014)
 
Net revenue of $111.6 million, up 60% from $69.7 million (up 19% from $93.8 million on a pro forma basis)
Net income of ($8.8) million, down from a net income of ($5.2) million
Adjusted EBITDA1 of $9.2 million, up from adjusted EBITDA1 of ($1.5) million (up from ($2.3) million on a pro forma basis)
Earnings per diluted share of ($0.23), down from earnings per diluted share of ($0.13)
Adjusted earnings per diluted share1 of $0.01, up from adjusted earnings per diluted share1 of ($0.12)
Cash earnings per diluted share1 of $0.06, up from cash earnings per diluted share of ($0.05)
 
First Half Highlights
(Comparisons are to the first half of 2014)
 
Net revenue of $204.5 million, up 35% from $151.1 million (pro forma revenue of $241.7 million up 16% from $209.2 million on a pro forma basis)
Net income of ($0.5) million, down from a net income of ($1.3) million
Adjusted EBITDA1 of $28.9 million, up from adjusted EBITDA1 of $10.6 million (pro forma adjusted EBITDA1 of $30.9 million up from $10.7 million on a pro forma basis)
Earnings per diluted share of ($0.07), down from earnings per diluted share of ($0.04)
Adjusted earnings per diluted share1 of $0.23, up from adjusted earnings per share1 of $0.01
Cash earnings per diluted share1 of $0.33, up from cash earnings per diluted share1 of $0.11
 
Retail Business (5)
 
In the second quarter of 2015, GAIN's retail business generated net revenue of $97.3 million, up from $60.3 million in the second quarter of 2014 (up 47% on a pro forma basis).  The retail OTC business contributed $86.4 million of net revenue, up 69% from $51.0 million in the second quarter 2014 (up 11% on a pro forma basis), and the futures business contributed $10.9 million of net revenue, up 16% from $9.4 million in the prior year quarter. 
 
Retail OTC trading volume was $1.1 trillion, up 104% from $522.2 billion in the second quarter of 2014 (up 47% on a pro forma basis).  Average daily retail OTC trading volume was $16.4 billion, up 104% from $8.0 billion in the second quarter of 2014 (up 47% on a pro forma basis).   Total futures contracts were 2.1 million in the second quarter of 2015, up 20% from 1.7 million in the second quarter of 2014.  Average daily futures contracts were 32,633, up 24% from 26,322 in the second quarter of 2014.
 
Institutional Business
 
In the second quarter of 2015, net revenue from the GTX business was $8.4 million, compared to $8.5 million in the prior year quarter.  Average daily volume for GTX was $18.3 billion in the quarter, a decrease of 4% from the prior year quarter. 
 
Dividend
 
GAIN's Board of Directors declared a quarterly cash dividend of $0.05 per share of the Company's common stock.  The dividend is payable on September 23, 2015 to shareholders of record as of the close of business September 14, 2015.
 
Conference Call
 
GAIN will host a conference call Thursday, August 6, 2015 at 8.00 a.m. ET.  Participants may access the live call by dialing +1 888.349.0112 (US Domestic), or +1 412.317.6001 (International). Please let the operator know you are here to join the GAIN Capital call.
 
A live audio webcast of the call, as well as a PDF copy of the earnings presentation, will be available on the Investor Relations section of the GAIN Capital website (http://ir.gaincapital.com).
 
An audio replay will be made available for one month starting approximately one hour after the call by dialing +1 877.344.7529 from the U.S. or +1 412.317.0088 from abroad, and entering the passcode 10069094#.
For more corporate information or to sign up for alerts, please visit: http://ir.gaincapital.com.
 
About GAIN
 
GAIN Capital Holdings, Inc. (NYSE: GCAP) provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities.  GAIN Capital is headquartered in Bedminster, New Jersey, with a global presence across North America, Europe and the Asia Pacific regions.  For further company information, visit www.gaincapital.com
 
1 See below for reconciliation of non-GAAP financial measures
2 Pro forma reflects inclusion of City Index results on a trailing twelve-month basis
3 Active accounts as of June 30, 2015
4 Reduction in indices net revenue compares indices net revenue in the second quarter 2015 to the average net revenue generated by indices products over the preceding 4 quarters, on a pro forma basis.
5 In order to more effectively highlight the comparative performance of GAIN's retail and institutional businesses, beginning this quarter, the Company's retail OTC businesses are included in the retail business results.
 
TAGS: forex.com  gain capital  financial results  net revenue  q2 2015 

More news about Forex.com

Broker Country Regulation Platform Min Deposit Review
Cyprus, UK, Mauritius CySec, FCA, IFSC MT4, MT5, Web $10 Review Website
Cyprus, Australia CySec, ASIC MT4, Web,
Mobile app
$100 Review Website
Australia, Cyprus ASIC MT4, MT5,
IRESSTrader
$100 Review Website
UK, Cyprus, Australia FCA, CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
Australia ASIC MT4, MT5 $100 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

More Forex Brokers News

Vantage Prime will no longer service non-Australian clients

May 20 2019 13:36:39

  Vantage Prime, which is a part of the Vantage FX group, announced it will no longer service non-Australian clients, online media Finance Magnates reported today. The broker’s decision is taken due to regulatory concerns. Read more

Dukascopy warns it has no cooperation with shady broker GCG Asia

May 16 2019 13:29:47

  Swiss forex brokerage and bank Dukascopy has repeatedly warned investors that it is has no cooperation Guardian Capital Asia (GCG Asia) and that the latter is likely involved in a fraudulent scheme. Read more

$75 mln forex Ponzi scam revealed in the US

May 03 2019 16:46:08

The Commodity Futures Trading Commission (CFTC) in the US has filed charges against Florida based Oasis International Group, Oasis Management and Satellite Holdings along with their owners for running a 75 million USD Ponzi scheme, concealed as forex investment program. Read more

Australians lost $86 mln to investment scams in 2018

May 02 2019 17:04:18

Australians lost over 86 million USD to investment scams in 2018 alone – the biggest portion of the almost 490 million USD  in losses from over 378 000 scam reports, the latest report of the Australian Competition and Consumer Commission’s (ACCC) reveals. Read more

FXTM now offers a deposit bonus of up to $5 000

Apr 25 2019 11:10:24

  Global award-winning brokerage FXTM has launched their biggest deposit bonus promotion ever. The broker is now offering an extra 30% back from every amount their traders deposit over a period of 30 days, up to a total of $5,000. Read more

FXTM appoints Han Tan as a Market Analyst for Southeast Asia region

Apr 19 2019 13:28:36

  Global award-winning forex broker FXTM has just announced the appointment of Tan Chung Han (Han Tan) as a Market Analyst. Read more

FXTM gets a license from Mauritius’ FSC

Mar 28 2019 09:59:36

  Award-winning forex brokerage  FXTM (ForexTime) continues its ongoing global expansion. The broker announced it has acquired a license from the Financial Services Commission (FSC) of the Republic of Mauritius previous week. Read more

Fortrade is the first broker to get an ASIC license in nearly 2 years

Mar 20 2019 15:03:35

  Fortrade acquired a financial services license from the Australian Securities and Investments Commission (ASIC), which hasn’t been very welcoming of new retail forex broker applicants lately. Read more

FP Markets launches a suite of cutting-edge MT4 tools for traders

Mar 06 2019 14:31:42

  FP Markets, a market-leading Forex and CFD provider, launches MT4 Trader Toolbox, a suite of twelve online trading tools which will take their clients’ trading to the next level. Read more

Major broker IG launched its US website

Jan 31 2019 13:15:37

  Global brokerage IG launched its website intended for US retail clients (www.ig.com/us). Residents of the US (with the exception of those in Arizona or Ohio) can now register on the broker’s website in less than 5 minutes and start trading. Read more

de | cn | ru