GAIN Capital reports net loss of $4.7 million for 3Q 2016 

Third Quarter

• Net revenue of $72.2 million
• Net loss of 4.7 million
• Adjusted EBITDA1 of $3.3 million
• Loss per diluted share of $0.11
• Adjusted loss per diluted share1 of $0.12

Nine Months

• Net revenue of $296.1 million
• Net income of $14.5 million
• Adjusted EBITDA1 of $62.7 million
• Earnings per diluted share of $0.25
• Adjusted earnings per diluted share1 of $0.49

GAIN Capital Holdings, Inc. (“GAIN”) (NYSE: GCAP), has issued an announced to publish financial results for the third quarter and nine months of 2016.

Net loss for the quarter was $4.7 million, down from a $1.0 million profit in the third quarter of 2015, and adjusted EBITDA was $3.3 million, down from $30.1 million in the third quarter of 2015. GAIN’s financial highlights for the three and nine months ended September 30 are included in the chart below.

“The challenging market conditions of the third quarter resulted in lower than expected average daily volumes and revenue capture,” commented Glenn Stevens, CEO of GAIN Capital. “However, the volatility outlook is improving as a result of several market drivers including Brexit, global interest rate uncertainty and the U.S. elections,” continued Mr. Stevens. “In addition, we are executing on several key initiatives that we believe will enhance our customer experience which will lead to increased customer engagement and drive long-term value for both clients and shareholders,” concluded Mr. Stevens.

Retail Segment

In the third quarter of 2016, GAIN’s retail segment generated net revenue of $52.7 million and segment profit of $6.5 million, reflecting a margin of 12%.

For the trailing twelve months ended September 30, 2016, the retail segment generated net revenue of $321.7 million and segment profit of $99.4 million, reflecting a margin of 31%.

Institutional Segment

In the third quarter of 2016, GAIN’s institutional segment generated net revenue of $6.9 million and segment profit of $1.0 million, reflecting a margin of 16%.

For the trailing twelve months ended September 30, 2016, the institutional segment generated net revenue of $28.9 million and segment profit of $6.0 million, reflecting a margin of 21%.

Futures Segment

In the third quarter of 2016, GAIN’s futures segment generated net revenue of $12.5 million and segment profit of $1.4 million, reflecting a margin of 11%.

For the trailing twelve months ended September 30, 2016, the futures segment generated net revenue of $48.5 million and segment profit of $4.8 million, reflecting a margin of 10%.

Dividend

GAIN’s Board of Directors declared a quarterly cash dividend of $0.06 per share of the company’s common stock, an increase of 20%. The dividend is payable on December 22, 2016 to shareholders of record as of the close of business December 12, 2016.

Share Repurchase

The company also announced that its Board of Directors has approved a share repurchase plan which authorizes the expenditure of up to $30 million for the purchase of the company’s common stock. The amount and timing of specific repurchases, if any, will depend on market conditions, the trading price of GAIN Capital’s common stock and other factors.

October Operating Metrics

Retail Segment Metrics

OTC average daily volume1 of $9.1 billion, a decrease of 3.8% from September 2016 and 31.7% from October 2015.
OTC trading volume1 of $190.9 billion, a decrease of 8.2% from September 2016 and 34.8% from October 2015.
Active OTC accounts2 of 131,277, a decrease of 1.3% from September 2016 and 11.5% from October 2015.

Institutional Segment Metrics

ECN average daily volume1 of $8.7 billion, an increase of 2.7% from September 2016 and 44.2% from October 2015.
ECN volume1 of $182.6 billion, a decrease of 2.0% from September 2016 and an increase of 37.6% from October 2015.
Swap Dealer average daily volume1 of $2.8 billion, a decrease of 9.5% from September 2016 and an increase of 32.5% from October 2015.
Swap Dealer volume1 of $58.4 billion, a decrease of 13.7% from September 2016 and an increase of 26.5% from October 2015.

Futures Segment Metrics

Futures average daily contracts of 28,272 a decrease of 11.3% from September 2016 and 13.4% from October 2015.
Futures contracts of 593,706, a decrease of 11.3% from September 2016 and 13.4% from October 2015.
Active futures accounts2 of 8,514, a decrease of 0.9% from September 2016 and 3.4% from October 2015.

Source: GAIN Capital – GAIN Capital Reports Third Quarter and Nine Months 2016 Results

---