GAIN Capital Reports Q2 2017, July Volumes Broadly Weak


This article was originally posted here.

GAIN Capital Holdings, Inc. (NYSE: GCAP), the biggest service provider of retail FX in the United States, has simply launched its monetary outcomes for the 2nd quarter ending June 30, 2017, along with its July 2017 metrics.

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GAIN’s net incomes under the United States GAAP for Q2 2017 can be found in at $98.1 million, making up a drop of -9.4 percent when compared to $108.3 million in the very same quarter a year earlier. The half-year duration ending June 30, 2017, netted an income drop of -29.6% year-on-year having decreased to $157.6 million from $223.8 million reported back in the exact same duration of 2016.

Changed EBITDA nevertheless was flat throughout an annual schedule, dropping -4.0 percent year-on-year after exposing a figure of $26.5 million, vs. just $27.6 million in the 3 months through June 30, 2016. In addition, the H1 2017’s figures likewise showed a more downbeat performance after yielding just $13.1 million, down -77.9 percent relative to $59.4 million a year back.

About Gain Capital’s earnings, quarterly GAAP earnings accomplished $13.9 million, up 28.7% year-over-year from $10.8 million in Q2 2016.

The CEO of GAIN Capital, Glenn Stevens commented in a declaration on the outcomes: “I am delighted to report strong outcomes for the 2nd quarter, mostly owned by increased client engagement. The year-over-year development in our bottom line and steady adjusted EBITDA margin of 27% highlight the effect of our repaired expense savings effort, which stays on target for an overall expense decrease of $15 million in 2017 and run rate cost savings of $20 million in 2018.”

” We think that this effort, combined with increased customer retention and acquisition through financial investments in customer-focused innovation and opportunistic acquisitions, will eventually allow us to grow margins, create extra totally free money and drive value for our investors,” Stevens elaborated.

July 2017 Metrics

Combined with a complete breakdown of its Q2 monetary outcomes was the release of GAIN Capital’s July 2017 institutional and retail trading metrics, which mainly took a dive on a regular monthly and annual basis in exactly what has become an industry-wide pattern.

In specific, GAIN Capital’s retail OTC trading volume was reported at $204.5 billion, sustaining a fall of -15.4 percent month-on-month compared with June 2017. Throughout an annual time frame, the figure revealed a comparable photo, leaking by -3.9 percent year-on-year from July 2016.

The typical everyday retail OTC trading volume throughout July 2017 came in at $9.7 billion, falling -11.8 percent mon the-on-month from $11.0 billion in the previous month, paired with a -4.0 percent decline year-on-year from $10.1 billion in July 2016. Furthermore, the metrics of active retail OTC accounts were flat, having numbered at 132,436 since July 31, 2017, inching lower by an element of -2.3 percent from a year back, likewise down -1.3 percent relative to June 2017.

Regarding its institutional metrics, ECN typical day-to-day institutional volume at GTX was available in at $10.1 billion throughout July 2017, reflective of a decrease of -6.5 percent from June 2017 but a boost of 21.7 percent from $8.1 billion in July 2016.

GAIN’s futures typical day-to-day agreements were reported at 23,607 throughout July 2017, down -10.9 percent month-on-month from June 2017 and pulling back by -20.3 percent from the year prior. In a bit different story, the active futures accounts increased to 7,996 throughout the previous month, up 1.4 percent from June 2017 but once again down -8.3 percent from July 2016.