GAIN Capital reports 2018 results, net revenues up 27% in Q4 YoY

Gain Capital
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FX brokerage group GAIN Capital Holdings, Inc. (NYSE: GCAP), which operates the and City Index retail forex brands, has released its financial results for the fourth quarter and full year 2018. The full year report showed massive improvement as compared to last year.

The Q4 highlights are:

  • Net revenues grew to $79.9 million as compared to $62.7 million in Q4 2017.
  • The company reported a net loss of $0.7 million as compared to the $6.8 million loss in 2017.
  • However, the adjusted net loss was $4.6 million versus the previous year’s $4.8 million.
  • Adjusted EBITDA came in at $5.2 million, which was lower than the $5.9 million reported in 2017.
  • Diluted GAAP EPS was a loss of $0.02, which was better than the $0.16 loss in 2017.

Annual highlights include:

  • Net income increased to $28.0 million as compared to the $14.9 million net loss reported in 2017, which was an 8% margin translating into $0.60 per share.
  • Net revenues grew to $358.0 million as compared to $278.2 million in 2017 representing a 29% annualized gain.
  • Adjusted net income was reported at $29.1 million, which was better than the $11.3 million loss reported in 2017.
  • Adjusted EBITDA grew to $86.5 million versus the $29.7 million booked in 2017.

Non-financial growth numbers

  • New direct retail accounts grew by 12% YoY in Q4, with full year figures indicating 16% growth over those for 2017.
  • The average daily volume (ADV) for retail clients grew 10% YoY, and 24% from Q3.
  • The ADV for the full year increased by 5% as compared to 2017.
  • Gains futures division expanded by 14% in 2018, which was almost double the 8% growth recorded in 2017.

LeapRate reminds that for the Q3-2018 financial results, GAIN Capital has indicated a healthy rise in Revenues and profitability, despite a dropoff in trading volumes and the sale of the company’s GTX institutional division.

Glenn Stevens GAIN Capital CEO

Glenn Stevens, GAIN Capital

Glenn Stevens, Chief Executive Officer of GAIN Capital, commented:

2018 was a solid year for GAIN Capital, with positive results in several key metrics. We delivered year-over-year revenue growth of 29% to $358 million, net income of $28 million on adjusted EBITDA of $87 million. New direct accounts increased 12% year-over-year, while client trading volumes increased 6% year-over-year. In addition, we returned more than $80 million to our investors during the year via buybacks, repurchases and dividends.

Looking ahead, we are well positioned to drive robust business growth over the next several years. We are embarking on a three-year strategic plan designed to power the next phase of GAIN’s success, which involves leveraging our considerable brand assets, further increasing our investment in marketing and building a best in class client proposition tailored to the needs of experienced traders and retail investors. We will deploy our strong balance sheet and profits to fund these strategic initiatives, while maintaining our focus on operational excellence and cost discipline, to deliver significant revenue growth and improved earnings over the next several years.

GAIN Capital’s Q4 and full 2018 results press release can be seen here.

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