FXCM Inc. Announces Second Quarter 2011 Results and July Operating Metrics – Revenues up, Volume down

Highlights: Second quarter 2011 revenues of $103.4 million, up 9% from first quarter 2011 and 7% versus the same period

Highlights:

  • Second quarter 2011 revenues of $103.4 million, up 9% from first quarter 2011 and 7% versus the same period in 2010
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  • Adjusted Pro Forma EBITDA of $28.5 million, up 12 % from first quarter 2011 and down 19% versus the same period in 2010
  • Pro Forma net income of $15.6 million, or $0.21 per fully diluted share
  • US GAAP net income of $3.3 million, or $0.19 per fully diluted share
  • Customer equity of $839.0 million at June 30, 2011, up 31% from year-end 2010 and up 97% from June 30, 2010
  • Declared a quarterly dividend of $0.06 per share of Class A common stock

NEW YORK, NY –August 11, 2011 – 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, 2011, revenues increased to $103.4 million, compared to $94.7 million for the first quarter 2011 and $96.7 million for the second quarter 2010, an increase of 9% and 7% respectively. Adjusted Pro Forma EBITDA for the second quarter 2011 was $28.5 million compared to $25.5 million for the first quarter 2011 and $35.2 million for the second quarter 2010, an increase of 12% and a decrease of 19%, respectively. Adjusted Pro Forma Net Income was $15.6 million, or $0.21 per share on a fully exchanged, fully diluted basis, compared to $13.7 million, or $0.18 per share for the first quarter 2011 and $21.1 million, or $0.28 per share, for the second quarter 2010, an increase of 14% and a decrease of 26%, respectively. U.S. GAAP net income for the second quarter 2011 was $3.3 million, or $0.19 cents per fully diluted Class A share.

Adjusted Pro Forma results assume the conversion and exchange of all FXCM Holdings, LLC units into FXCM Inc. Class A shares, 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.

For the six months ended June 30, 2011 revenues increased 14% to $198.1 million, compared to $173.6 million for the corresponding period in 2010. Adjusted Pro Forma EBITDA for the six months ended June 30, 2011 was $54.0 million, compared to $60.3 million, for the corresponding prior period, a decrease of 10%. Adjusted Pro Forma Net Income was $29.4 million, or $0.39 on a fully exchanged, fully diluted basis, compared to $35.8 million, or $0.48 per share, for the corresponding prior year period, a decrease of 18%. U.S. GAAP net income for the six months ended June 30, 2011 was $6.1 million, or $0.35 cents per fully diluted Class A share.

During the three months ended June 30, 2011, FXCM Inc. established a reserve of $16.0 million related to a settlement with the National Futures Association (“NFA”) and ongoing discussions with the Commodity Futures Trading Commission (“CFTC”). Certain founding members of FXCM Holdings, LLC have agreed to reimburse the expense, resulting in no impact to the net income of FXCM Inc.

“FXCM delivered solid results in the second quarter. In particular, we are pleased with growing client equity to $839.0 million – up 97% from a year-ago and up 31% just from December 31, 2010,” said Drew Niv, Chief Executive Officer of FXCM Inc. “We are also pleased that in the quarter our retail clients generated record trading volume of $938 billion.”

“FXCM is well positioned in the event of market turmoil,” he continued. “In fact, in the first seven trading days in August our retail clients traded $19.0 billion per day in volume – a record for FXCM,” he continued.

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In addition, FXCM Inc. today announced certain key operating metrics for July 2011 for its retail and institutional foreign exchange business. Monthly activities included:

July Monthly Metrics:

Retail Trading Metrics

  • Retail customer trading volume(1) of $311 billion in July 2011, 2% lower than June 2011 and 21% higher than July 2010.
  • Average retail customer trading volume(1) per day of $14.8 billion in July 2011, 3% higher than June 2011 and 26% higher than July 2010.
  • An average of 367,787 retail client trades per day in July 2011, 1% higher than June 2011 and 23% higher than July 2010.
  • Tradeable accounts(2) of 174,306 as of July 31, 2011, an increase of 3,168, or 2% from June 2011, and an increase of 5,653,or 3%, from July 2010.

Institutional Trading Metrics

  • Institutional customer trading volume(1) of $60 billion in July 2011, 17% lower than June 2011 and 11% lower than July 2010.
  • Average institutional trading volume(1) per day of $2.8 billion in July 2011, 13% lower than June 2011 and 7% lower than July 2010.
  • An average of 6,282 institutional client trades per day in July 2011, 14% lower than June 2011 and 84% higher than July 2010.

More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company’s corporate website, www.fxcm.com.

This operating data is preliminary and subject to revision and should not be taken as an indication of the financial performance of FXCM Inc. FXCM undertakes no obligation to publicly update or review previously reported operating data. Any updates to previously reported operating data will be reflected in the historical operating data that can be found on the Investor Relations page of the Company’s corporate website, www.fxcm.com.

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