Publicly listed brokerage GAIN Capital Holdings, Inc. (NYSE: GCAP), the largest provider of retail FX in the United States, has reported its results for Q4 2017, and the fiscal year ending on December 31, 2017.
The group has disclosed a decline across a number of different metrics during the three months through December, including its revenues and net income. In addition, the latest report shows weak figures across key components of its business on a year-over-year basis, per a company financial disclosure.
Detailing the results, GAIN’s net revenues under the US GAAP for Q4 2017 came in at $69.7 million, constituting a decrease of 39 percent when compared with $115.8 million in the same quarter a year ago. Furthermore, the year ending December 31, 2017 netted a revenue drop of 25 percent year-over-year, having declined to $308.6 million from $411.8 million reported back in the fiscal 2016.
The bottom line figure was also weaker across both quarterly and yearly timetables, shedding 103 percent year-over-year after revealing a net loss of $3.7 million, or $0.08 per share for the fourth quarter vs. a gain of $99.6 million in the Q4 2016. Furthermore, the full year’s figures also reflected a downbeat performance after yielding a net loss of $11.2 million, or $0.20 per share, down 130 percent relative to a profit of $36.9 million in in the year ending December 31, 2016.
GAIN Capital said that the sweeping changes to US tax law knocked about $3.1 million, or $0.10 per share, off its profits for the end of 2017, as well as $5.7 million, or $0.13 per share, for the fourth quarter.
According to Glenn Stevens, CEO of GAIN Capital, in a statement on the results: “Our financial performance in 2017 reflects the considerable headwinds caused by the lowest market volatility levels over the past decade. Despite the macro pressure on our business, we saw areas of growth, particularly in retail client assets and our ECN platform, which has been taking market share and increasing trading volume. In the first two months of 2018, with a resurgence of market volatility, we are seeing positive returns on our efforts to grow client assets and direct accounts in the form of significant increases in client trading volumes and strong revenues in the first part of the year.”