GAIN Capital Reports 30% Drop in Q2 Retail FX Volumes

GAIN Capital Holdings, Inc. (NYSE: GCAP) has just reported its aggregated trading volumes for Q2 2019. The group’s most recent retail volumes took another step back during the second quarter, continuing with a consecutive string of weak metrics YoY since ending 2018 on a positive note.

In particular, GAIN Capital’s retail clients transacted a total of $464.3 billion in Q2 2019, down 31.7 percent year-over-year from $679.6 billion in Q2 2018. The group’s average daily volumes (ADVs) came in at $7.1 billion in the April-June period, also lower by 33 percent over a yearly timetable from $10.6 billion per day in Q2 2018.

Meanwhile, active accounts in the retail OTC segment totaled 118,320 at of the end of June 2019, which is lower nine percent on a yearly basis from 130,018 accounts the previous year.

Gain reveals weak financials

Futures trading fell last quarter to 1,978,251 contracts, down 4.6 percent year-over-year when weighed against 2,073,684 contracts in the year prior.

Earlier today, the company reported its financial results for the second quarter, which saw a year-on-year drop. GAIN’s net revenues under the US GAAP for Q2 2019 came in at $75.5 million, constituting a fall of ten percent compared to $84.2 reported back in the April-June quarter of 2018. Over a quarterly basis, however, the company revenue nearly doubled from $38.4 million in the first quarter.

Business highlights, according to the company’s report, show the listed brokerage will remain focused on returning capital to shareholders through share repurchases and dividends, which amounted to $2.2 million.

In terms of Gain Capital’s bottom line, the quarterly net income from continuing operations was only $0.9 million, or $0.02 per share, compared to $6.8 million in the year prior and a net loss of $28.4 million in Q1 2019.