GAIN Capital Reports Solid Results in Fiscal 2016, Net Income Up 243% YoY

Adjusted EBITDA was stronger across quarterly and yearly timetables, climbing 23.5% YoY to $ 99.6 million.

GAIN Capital Holdings, Inc. (NYSE: GCAP), the largest provider of retail FX in the United States, with over 70,000 customer accounts, has just released its financial results for the quarter and the full year ending December 31, 2016, as well as its February 2017 metrics, according to a corporate statement.

Detailing the results, GAIN’s net revenues under the US GAAP for Q4 2016 came in at $115.8 million, constituting an increase of 12.6 percent when compared with $102.8 million in the same quarter a year ago. However, the year ending December 31, 2016 netted a revenue drop of -5.3% YoY, having declined to $411.8 million from $435.4 million reported back in the fiscal 2015.

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Adjusted EBITDA however was stronger across both quarterly and yearly timetables, climbing 23.5 percent YoY after revealing a figure of $99.6 million, vs. only $80.6 million in the year ending December 31, 2015. Furthermore, the Q4 2016’s figures also reflected a more upbeat performance after yielding $36.9 million, up 72.4 percent relative to $21.4 million in Q4 2015.

In terms of Gain Capital’s net income, quarterly GAAP net income achieved $20.8 million, up 91% year-over-year from $10.9 million in Q4 2015. Across a full year interval, the net income also rose in 2016 to $35.3 million, good for a jump of 243 percent when weighed against its prior year’s equivalent.

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According to Glenn Stevens, CEO of GAIN Capital, in a statement on the results: “We are pleased that we have completed a successful integration of the City Index business, exceeding our $45 million cost synergy targets, while optimizing the combined business to realize meaningful margin expansion. Looking forward, with our solid balance sheet, strong brands and global reach, we are well positioned to grow the business both organically and inorganically and further our long-term objective of growing market share leadership in our retail, institutional and futures businesses.”

February 2017 Metrics

Coupled with a full breakdown of its 2016 financial results were the release of GAIN Capital’s February 2017 institutional and retail trading metrics, which mostly took a dive MoM and YoY in what has become an industry-wide trend.

In particular, GAIN Capital’s retail OTC trading volume was reported at $170.2 billion, incurring a fall of -19.0% MoM compared to January 2017. Across a yearly timeframe, the figure showed a similar picture, nose-diving by -38.4% YoY from February 2016. Furthermore, the average daily retail OTC trading volume during February 2017 came in at $8.5 billion, falling -10.5% MoM, coupled with a -35.6% plunge YoY from February 2016. Finally, the metrics of active retail OTC accounts were mixed, having numbered at 133,027 in February 2017, inching lower by a factor of -7.4% from a year ago, but climbed 4.6% relative to January 2017.

In terms of its institutional metrics, ECN average daily institutional volume at GTX came in at $11.1 billion during February 2017, reflective of a decline of -8.3% from January 2017 but an increase of 33.7% from February 2016.

Finally, GAIN’s futures average daily contracts were reported at 31,028 during February 2017, down -3.6% MoM from January 2017 and retreating by -16.1% from the year prior. This performance was exacerbated by futures contracts which declined to 589,538 during the previous month, down -8.4% from January 2017 and -20.3% from February 2016.

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