GAIN Capital's Q2 Revenues Fall Along With July Volumes

GAIN Capital Holdings, Inc. (NYSE: GCAP), a provider of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term services, has announced its financial results for the second quarter and first half of 2016 according to an official company press release.

Q2 2016 Highlights

GAIN reported net revenue of $108.3 million, down from $111.5 million when compared to Q1 2015 on a year-on-year basis and down from $115.6 million during Q1 2016 reflecting a -6.3 percent QoQ decrease. Adjusted EBITDA was $27.6 million for Q2, up from $9.0 million over the same period last year.

Net income for the quarter was $10.8 million, up from a $7.1 million loss in the second quarter of 2015 and up from $8.4 million in Q1 2016.

Take the lead from today’s leaders. FM London Summit, 14-15 November, 2016. Register here!

First Half 2016 Results

For H1 2016, GAIN reported net revenue of $223.8 million, up from $204.4 million recorded for the same period in 2015, while adjusted EBITDA was $59.4 million for H1 2016, up from $28.9 million over the same period last year.

Net income for the first half of 2016 was $19.2 million, up from a $1.7 million loss in H1 2015.

Glenn Stevens, CEO of GAIN Capital, commented: "Our second quarter and first half results reflect the benefits of GAIN's diversification strategy and successful execution of expense management initiative.”

“For the trailing twelve months ended June 30, 2016, GAIN delivered over $450 million of revenue, $31 million of net income and approximately $111 million of adjusted EBITDA with the second quarter of 2016 representing the fourth consecutive quarter that GAIN has delivered more than $20 million of adjusted EBITDA.”

“In addition, we successfully handled customer trading leading up to and following the EU referendum highlighting GAIN's Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term as a core competency”.

July Operating Metrics

GAIN has also released its July FX volume figures revealing an OTC trading volume of $212.7 billion, a decrease of 8.2 percent from June 2016 and 44.3 percent from July 2015.

The company’s Institutional Segment volumes were $173.6 billion, a decrease of 18.2 percent from June 2016 and an increase of 10.7 percent from July 2015.