GAIN Capital Reports Second Quarter 2015 Results
Second Quarter Highlights
- Net revenue of $111.6 million, up 60%
- Net income of ($8.8) million, compared to ($5.2) million
- Adjusted EBITDA1 of $9.2 million, compared to ($1.5) million
- Earnings per diluted share of ($0.23), compared to ($0.13)
- Cash earnings per diluted share1 of $0.06, up from a loss of ($0.05)
GAIN Capital Holdings, Inc. (“GAIN”) (NYSE: GCAP), a leading global provider of online trading services, announced financial results for the second quarter and first half of 2015.
“In our first quarter following the acquisition of City Index, I am very pleased by the significant progress we have made integrating the two companies,” stated Glenn Stevens, CEO of GAIN Capital. “We remain confident in our ability to achieve $45-55 million in cost synergies and are currently tracking to the high end of the range. In addition to integration-related cost initiatives, we have made strong progress in reducing our core fixed operating expenses, which decreased 4% and 7% from the first quarter 2015 and the second quarter 2014, respectively,” continued Mr. Stevens.
“Aside from executing on our integration and cost-cutting plans, we have continued to increase the overall scale of our businesses and experienced near record levels of trading volume, active accounts and customer assets in the second quarter,” added Mr. Stevens. “With our scale – pro forma2 revenue and adjusted EBITDA1 of$539.2 million and $111.3 million respectively, and 157,000 active accounts3 – broad geographic reach and strong brand presence, we are in an enviable position as one of the largest providers in our industry. We also continue to successfully diversify our product and revenue mix, with approximately 63% of retail trading volume coming from FX and the remaining 37% from equities, indices, commodities and other non-FX products, compared to 75% and 25%, respectively, a year ago. Revenue capture was solid in FX and most other product areas, but we experienced unusually adverse trading conditions across indices, which resulted in approximately$20 million4 lower than normal net revenue for the quarter,” added Mr. Stevens.
“Our institutional business continues to perform well and contributes attractive, commission-based revenues to our results. With the several recent institutional ECN transactions in this space clearly demonstrating the market’s enthusiasm for these businesses, we are excited to continue to leverage our distinctive technology and take market share from our competitors,” Mr. Stevens concluded.
Source: GAIN Capital
