Gain Capital (NYSE: GCAP), one of the leading US forex broker, released data on its performance in the last quarter of 2015, as well as the full year results.
According to the report its net revenue for the fiscal 2015 was $ 435.4 million, up 19% from 2014. Adjusted EBITDA for the year was $80.5 million, up from $74.7 million in 2014.
Full Year 2015
- Net revenue of $ 435.4 million
- Net income of $10.2 million
- Adjusted EBITDA of $80.5 million
For the entire 2015 fiscal year the average trading volume (ADV) was $15.4 billion, up 39% from 2014. The ADV on the ECN and for the Swap Dealer was $7.2 billion and $3.1 billion.
As for Q4 2015, ending December 2015, Gain Capital reported the following metrics:
- Net revenue of $102.8 million
- Net income of $15.5 million
- Adjusted EBITDA of $21.5 million
In Q4 the retail segment the ADV was $12.5 billion, 1% less than in Q3. At the same time, in the institutional segment the ADV was was $6.4 billion and $2.8 billion, on the ECN and for the swap dealer, respectively.
“This year reflects GAIN’s continued success in executing its strategy, particularly relating to the scaling and diversification of our retail business, while also growing our other business segments,” commented Glenn Stevens, CEO of Gain Capital. “We successfully closed on the acquisition of City Index in Q2 and are seeing the benefits of the cost synergies reflected in our financial results. Our achievement of approximately $45 million in run-rate cost synergies by Q4 2016 will drive continued expansion in our operating margins,” continued Stevens.
The overall performance of Gain Capital in 2015 was a mixed bag with alternating good and bad months. The broker, however, ended the year on a high note with a relatively good performance in the last month of the year, especially in the retail segment.
Last week Gain Capital released data on its January 2016 client deposits. According to the publication on the website of the US Commodity Futures Trading Commission (CFTC), they exceeded $135 million and scored a spectacular 31.2% increase, year-on-year – the highest among the six US forex brokers.
At the same time Gain Capital’s main competitor and largest US forex broker, Forex Capital Markets (NYSE:FXCM), also reported its 2015 fourth quarter and full year financial results, as well as its retail clients deposits for January 2016. According to its metrics, it retains its leading position in terms of client deposits. The overall size of the client deposits of the six US forex brokers, however, continues to fall, shows the CFTC data.
Recently Gain Capital announced that it is setting up a money transferring company, called Gain Capital Payments Ltd. and would start offering money wiring services through the website ForeignExchange.com. It would most likely launch in Q2 2016, from the UK.
Meanwhile, earlier this month the Japanese subsidiary of Gain Capital, trading as Forex.com Japan, announced it is doubling the margin requirements for corporate accounts to 1.0%.
Gain Capital Group was established in 2003 and went public on the NYSE in 2010.
The company serves retail and institutional clients under the trading brands Forex.com, City Index, GTX, and Gain Capital. It is active in North America, Europe and the Asia Pacific regions.
The broker offers trading in forex, commodities, and global equities. Its largest retail forex broker, Forex.com, also offers white label solutions for other forex brokers, operating throughout the world.