FXCM Q1 and April 2014 metrics down, BUT expands market share with FXDD purchase for when conditions improve…


First quarter and April 2014 results come just as it was officially announced that FXCM will take over the client book of FXDD’s USA business. They made sure to announce this news at the same time results were announced in what is a forgettable month across the FX world. This acquisition of FXDD ‘s client book will boost the firm in the short and long runs. The financial impact of the move will have lasting effects with the limited number of brokers USA clients have to trade FX with anyway, which puts an ever bigger spotlight on FXCM to service USA traders as competition in the USA market dwindles.

Financial Highlights for Q1:

  • US GAAP revenues of $115.0 million, down 6% versus the same period in 2013
  • US GAAP net income attributable to FXCM Inc. of $2.1 million or $0.05 per fully diluted share down 70% and 79% respectively versus the same period in 2013 –
  • Adjusted Pro Forma EBITDA of $24.6 million, down 44% versus the same period in 2013
  • Adjusted Pro Forma net income of $5.2 million or $0.07 per fully exchanged, diluted share down 70% and 70% respectively versus the same period in 2013

 APRIL VOLUMES:

— Retail customer trading volume of $250 billion, 32% lower than April 2013 ($290 billion in March 2014 a 13.79% drop MoM.)

— Institutional customer trading volume of $185 billion, 1% higher than April 2013 ($200 billion in March 2014 a 7.5% drop MoM.)

Read: FXCM posts second-best-ever institutional volumes in March, but retail volumes are slow fxcmapril2014 FXCM Inc. (NYSE:FXCM), a leading online provider of foreign exchange, or FX, trading and related services, today announced for the quarter ended March 31, 2014, US GAAP revenues of $115.0 million, compared to $122.9 million for the quarter ended March 31, 2013, a decrease of 6%. U.S. GAAP net income attributable to FXCM Inc. was $2.1 million for the First Quarter 2014 or $0.05 per diluted share, compared to $6.9 million or $0.23 per diluted share for the First Quarter 2013, a decrease of 70% and 79% respectively. Adjusted Pro Forma EBITDA for the First Quarter 2014 was $24.6 million, compared to $43.8 million for the First Quarter 2013, a decrease of 44%. Adjusted Pro Forma Net Income was $5.2 million or $0.07 per share for the First Quarter 2014, compared to $17.5 million or $0.23 per diluted, fully exchanged share for the First Quarter 2013, a decrease of 70% and 70% respectively.

FXCM CEO Drew Nix remains upbeat
FXCM CEO Drew Niv remains upbeat

“Volatility in the currency markets is currently at lows only seen twice in the past 20 years,” said Drew Niv, Chief Executive Officer. “However, having grown our business so significantly in the past few years, we believe we have the scale to continue to weather the difficult trading conditions relative to our competition and use them to expand our market share for when conditions improve.”

FXCM (NYSE:FXCM) shares were down 2% to close the day on May 7th at $14.02.

For the opening of the USA session on March 8th, FXCM shares opened down a point at $13.02! However, by mid morning trading, shares stabilized as value buyers came in to lift the price back too $13.84, off just 1.28%.

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FXCM Q1 and April 2014 metrics down, BUT expands market share with FXDD purchase for when conditions improve...

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