GAIN Capital Holdings, Inc. (NYSE: GCAP), the largest provider of retail FX in the United States, has just released its financial results for the third quarter ending September 30, 2018, showing a strong uptick in revenues relative to last year.
GAIN’s net revenues under the US GAAP for Q3 2018 came in at $95.5 million, constituting a gain of 30 percent compared to $73.8 reported back in the July-September quarter of 2017. Over a quarterly basis, the company revenue was also higher 42 percent from $67.1 million the previous quarter.
Another area of strength this quarter at GAIN Capital was its adjusted EBITDA which was reported at $30.5 million, more than doubled from a $12.9 million in the three months through September 30, 2017.
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In terms of Gain Capital’s bottom line, the quarterly net income from continuing operations achieved $10.0 million, or $0.22 per share, compared to an adjusted net loss of $3.1 million in the third quarter of 2017.
Furthermore, the nine-month period ending September 30, 2018, netted a strong revenue advance year-on-year, having increased to $28.7 million from an $8 million loss reported back in the same period of 2017. At the time, 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.
Gain Capital’s CEO Glenn Stevens commented: “While overall low market volatility continued to weigh on retail trading volumes during the quarter, our diverse product offering enabled strong revenue growth. Volatility in emerging markets, along with trade tensions, prompted high trading activity in emerging market currencies, as well as certain metals and index products, which helped to generate overall revenue capture of $164 per million for the quarter. In addition, our continued focus on organic, direct account growth and marketing initiatives helped deliver strong operating results in Q3, with new direct accounts up 28% year-over-year. As reiterated through our recently announced $50 million tender offer, we are firmly committed to executing a balanced capital allocation strategy to enhance shareholder value.”