GAIN Capital Loses $60 Million in 2019, Revenues Drop 35pc

Publicly listed brokerage GAIN Capital Holdings, Inc. (NYSE: GCAP), the ‎largest provider of retail FX in the United States, had a disappointing fiscal year in 2019.

GAIN’s net revenues under the US GAAP for Q4 2019 came in ‎at $53.3 million, down 33 percent when compared with $79.9 million ‎in the same quarter a year ago. Furthermore, the year ending December 31, 2019, netted a ‎revenue drop of 35 percent year-over-year, having plunged to $234 million from $358.0 million reported ‎back in fiscal 2018.‎

The company’s CEO suggests that an unusually low volatility environment last year hit its fortunes and resulted in lower activity across the markets, which led to its disappointing numbers.

The bottom line figure was downbeat across both the quarterly and yearly timetables, showing a net loss swollen to $31.2 million for the fourth quarter ‎vs. $0.7 million in Q4 2018.

Furthermore, the full year’s figures reflected a bleaker performance after yielding a net loss of $60.8 million, or $1.63 per share, compared to net income of $28.0 million, or $0.60 per share in the year ending December 31, 2018.‎

Despite the weak financial results, GAIN Capital stock is still up by over 66 percent after news about an Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term offer from INTL FCStone started making rounds in trading circles this morning.

The transaction is set to be completed in mid-2020, subject to approval by GAIN’s stockholders and regulators, as well as other customary closing conditions.

According to Glenn Stevens, CEO of GAIN Capital, in a statement on the results: "2019 will be marked as a year of multi-decade low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, or in some cases, such as Eurodollar, all-time lows, which understandably had an adverse impact on GAIN's financial performance. Despite that, our focus on organic growth saw good year on year improvement in key underlying client metrics, with new direct opened accounts improving 67%, Retail client equity 12% higher and 3-month direct actives increasing for a fourth consecutive quarter to finish 13% above Q418. As such, we remain well positioned to capitalize on increased volatility upon the return of more normal market conditions."