Foreign Exchange and CFDs brokerage FXCM Inc. (NYSE:FXCM) has just announced its latest quarterly results. The company reports that for the quarter that ended on June 30th, trading revenue amounted to $69.0 million, which is higher by over 16 per cent when compared to the same period last year.
FXCM reported that net income was $60.5 million. The figure includes a $116.5 million net gain on derivative liabilities (including a $116.5 million net gain on derivative liabilities) for the quarter ended June 30, 2016, or $10.80 per diluted share, compared to U.S. GAAP net loss attributable to FXCM Inc. from continuing operations of $98.9 million, or $20.30 per diluted share, for the quarter ended June 30, 2015.
Commenting on the announcement, the CEO of FXCM Drew Niv said: “The growth initiatives we implemented last year continue to gain traction with revenue per million increasing, as well as CFD trading volume increasing.”
For the first six months of the year, trading revenue at FXCM totaled $138.7 million, which compares to $128.4 million last year. The number is higher by 8 per cent when compared to last year.
For the same period FXCM’s net income was $121.8 million, compared to a loss of $492.2 million last year. The quarterly and half-year results were impacted by a net gain on derivative liabilities of $116.5 million and $227.4 million, respectively. Those are non-cash changes in the value of embedded derivatives associated with the Leucadia loan post-SNB.
In its own quarterly report, Leucadia National has stated that the value of the company's investment in FXCM (NYSE:FXCM) has decreased by almost $48 million throughout the quarter. As reported earlier by Finance Magnates, the firm's outstanding balance on the loan from Leucadia was only marginally lower than in September 2015, now at $192.5 million ($195 million then).
