FX and CFDs brokerage FXCM Group has just released its financial results for Q3 2017, which revealed a double-digit drop in revenues though it was able to generate a positive EBITDA relative to the last year, according to a corporate statement.
Detailing the results, FXCM’s net revenues for Q3 2017 came in at USD 43.9 million, constituting a drop of 8.5 percent when compared with USD 48.0 million in the same quarter a year ago. In addition, the company saw a bigger fall on a quarter-over-quarter basis, having notched a 11.1 percent drop compared to $49.4 million in Q2 2017.
[gptAdvertisement]
For the three months ending September 30, 2017, FXCM yielded an operating loss at $4.24 million, which reflects an improvement of 20.0 percent vs. a loss of $5.33 million in Q3 2016. This figure was again worse across a quarterly timetable when compared with a net loss of $2.4 million from the second quarter.
Finally, adjusted EBITDA from continuing and discontinued operations was reported at $3.8 million, down from $8.5 million in Q2 2017.
Coupled with a breakdown of its Q2 2017 financial results,Global Brokerage Inc (NASDAQ:GLBR), the parent company of FXCM Group, revealed selected business highlights. Specifically, the company said that it fired 170 employees, which represents approximately 22% of its global workforce, following the Settlement with the American authorities to withdrawal from business in the United States.
Elsewhere, the company has used proceeds from the sale of US customer accounts to Gain Capital to pay nearly $37.0 million of principal on the Leucadia loan in the nine months ended September 30, 2017. Subsequently, it repaid $4.0 million from the second installment using the monies it received from the sale of DailyFX. The remaining term loan balance is $67.6 million as of the date of this filing.
In addition, the company said it sold certain intellectual property and fixed assets of V3 Markets in August 2017 for $300,000 in cash, and ceased the remaining operations. If all sales are completed, the Chicago based proprietary trading firm is expected to generate $2.0 million in cash to the group, which intends to use for repaying part of Leucadia loan.
Brendan Callan, CEO of FXCM, commented: “Despite multi-year low Volatility in the currency markets in the third quarter, we were able to generate Adjusted EBITDA of $3.8 million, including a $1.2 million charge for severance expense as we continue to improve our cost structure. Additionally, we repaid $55.8 million of our loan with Leucadia and now have $67.6 million of principal outstanding on our original $300.0 million loan.”
