GAIN Capital releases Q1 results, reports $77.3m net income

The US online trading services provider, GAIN Capital Holdings, Inc. (NYSE: GCAP), announced its trading volumes for the first quarter of 2020.

GAIN reported that its net income surged to 77.3 million, or $2.06 per share for the first three months of 2020. Compared to last year, the company reported net loss of $28.4 million.

The net revenue skyrocketed to $185.7 million for Q1, compared to last year’s first quarter when it was 38.4 million.

Adjusted net income amounted to $78.6 million, or $2.09 per share and adjusted EBITDA for the Q1 2020 was $114.4 million.

Gain Capital

Retail performance during the first quarter was affected by the unusually high volatility resulting from conditions and concerns, caused by the coronavirus pandemic. Trailing 3-month direct active accounts grew a record 25% compared to the previous year of 87,349. RPM marked a $231 quarterly record, with average daily volume of $11.7 billion, 52% up from the prior year.

Glenn Stevens, CEO of GAIN Capital said:

Glenn Stevens new

Glenn Stevens

Proactive steps taken to reduce our fixed overheads, broaden the customer base and ultimately improve the Company’s operating leverage during 2019 had positioned GAIN well to benefit upon the return of volatility, which was driven to extraordinary levels by economic concerns over the impact of the coronavirus pandemic in recent months. GAIN’s March volumes reached multi-year highs, amid market conditions that were favorable to revenue capture, as well as volumes, with RPM of $231 for the first quarter.

Stevens continued:

Client metrics were strong during the quarter, with a 57% year-on-year increase in clients who placed their first trade. Market conditions not only attracted new clients, but also engaged those who had previously opened accounts during 2019 but had not yet traded. That in turn helped improve our 3-month trailing active accounts by 25% compared to last year.

The Board of Directors of Gain Capital declared a quarterly cash dividend of $0.06 per share of the Company’s common stock. The dividend is payable on June 26, 2020 to shareholders of record as of the close of business on June 23, 2020.

The company stated that the acquisition by INTL FCStone, Inc stays on course and is planned to complete during the third quarter of 2020.

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