FXCM Inc (NYSE:FXCM), the globally regulated online provider of forex trading and related services, today announced financial results for the quarter ended September 30, 2015 and trading metrics for the month of October 2015. U.S. GAAP trading revenue from continuing operations were $56.3 million, compared to $88.7 million for the quarter ended September 30, 2014. U.S. GAAP net income attributable to FXCM Inc. from continuing operations was $64.3 million for the third quarter 2015 or $12.10 per fully diluted share, compared to U.S. GAAP net income attributable to FXCM Inc. from continuing operations of $2.0 million or $0.45 per fully diluted share for the third quarter 2014.
Third Quarter 2015 Highlights:
- U.S. GAAP net revenues from continuing operations of $59.6 million for Q3 2015 vs. $59.2 million for Q2 2015.
- U.S. GAAP net income attributable to FXCM Inc. from continuing operations of $64.3 million or $12.10 per fully diluted share, including a $137.6 million gain on derivative liability
- U.S. GAAP net revenues from discontinued operations of $14.8 million
- U.S. GAAP net income attributable to FXCM Inc. from discontinued operations of $9.3 million or $1.76 per fully diluted share
- Adjusted EBITDA from continuing and discontinued operations of $5.2 million
- Strong combined operating cash position of $254.3 million and regulatory surplus of $85.1 million at September 30, 2015
For the nine months ended September 30, 2015, U.S. GAAP trading revenue from continuing operations was $184.7 million, compared to $245.3 million for the nine months ended September 30, 2014. U.S. GAAP net loss attributable to FXCM Inc. from continuing operations was $427.9 million for the nine months ended September 30, 2015 or $86.13 per fully diluted share, compared to U.S. GAAP net loss attributable to FXCM Inc. from continuing operations of $1.4 million or $0.36 per fully diluted share for the nine months ended September 30, 2014.
FXCM revenues are down ‘naturally’ since they have been selling some businesses this year (Japan, Hong Kong, moved institutional business to FastMatch). FXCM’s major public competitor GAIN Capital reported revenues of $127.9M, up 15% QoQ.
Related Reading: FXCM must sell-off “non-core” assets to raise capital.
Results from operations for the quarter ended September 30, 2015 included a gain on derivative liability of $137.6 million and results from the nine months ended September 30, 2015 included a loss on derivative liability of $254.7 million. In each case, the gain/loss is a non-cash item relating to the increase/decrease in value of the Leucadia Letter Agreement.
The Letter Agreement is a component of the financing package provided by Leucadia National Corp). On January 15, 2015, FXCM’s customers suffered negative equity balances due to the unprecedented move in the Swiss Franc after the Swiss National Bank discontinued its peg of the Swiss Franc to the Euro.
On January 16, 2015, FXCM entered into a financing agreement with Leucadia that permitted FXCM’s regulated subsidiaries to meet their regulatory capital requirements and continue normal operations after significant losses were incurred resulting from the events of January 15, 2015.
October 2015 Trading Metrics from Continuing Operations Highlights:
- Retail customer trading volume of $335 billion in October 2015, 3% higher than September 2015 and 25% lower than October 2014.
- Institutional customer trading volume of $34 billion in October 2015, 28% lower than September 2015 and 63% lower than October 2014.
To see the official release, click here.