Foreign exchange and CFDs brokerage FXCM Inc. (NYSE:FXCM) has just announced its latest quarterly results. The company reports that for the quarter that ended on June 30th, trading revenue amounted to $69.0 million, which is higher by over 16 per cent when compared to the same period last year.
FXCM reported that net income was $60.5 million. The figure includes a $116.5 million net gain on derivative liabilities (including a $116.5 million net gain on derivative liabilities) for the quarter ended June 30, 2016, or $10.80 per diluted share, compared to U.S. GAAP net loss attributable to FXCM Inc. from continuing operations of $98.9 million, or $20.30 per diluted share, for the quarter ended June 30, 2015.
Commenting on the announcement, the CEO of FXCM Drew Niv said: “The growth initiatives we implemented last year continue to gain traction with revenue per million increasing, as well as CFD trading volume increasing.”
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For the first six months of the year, trading revenue at FXCM totaled $138.7 million, which compares to $128.4 million last year. The number is higher by 8 per cent when compared to last year.
For the same period FXCM’s net income was $121.8 million, compared to a loss of $492.2 million last year. The quarterly and half-year results were impacted by a net gain on derivative liabilities of $116.5 million and $227.4 million, respectively. Those are non-cash changes in the value of embedded derivatives associated with the Leucadia loan post-SNB.
In its own quarterly report, Leucadia National has stated that the value of the company’s investment in FXCM (NYSE:FXCM) has decreased by almost $48 million throughout the quarter. As reported earlier by Finance Magnates, the firm’s outstanding balance on the loan from Leucadia was only marginally lower than in September 2015, now at $192.5 million ($195 million then).