FXCM Q2 revenues hit from asset sales, but July volumes remain strong


FXCM Inc. (NYSE:FXCM), the globally regulated provider of forex trading and related services, today announced financial results and trading metrics for the quarter ended June 30, 2015. Second quarter trading revenue from continuing operations reported at $59.2 million, compared to $74.4 million for the quarter ended June 30, 2014, a decrease of 20%. Net loss attributable to FXCM from continuing operations was $98.9 million for the second quarter 2015 or $2.03 per fully diluted share, compared to net loss attributable to FXCM from continuing operations of $2.6 million or $0.07 per fully diluted share for the second quarter 2014.

For the six months ended June 30, 2015, trading revenue from continuing operations of $128.4 million, compared to $156.6 million for the six months ended June 30, 2014, a decrease of 18%. Net loss attributable to FXCM from continuing operations was $492.2 million for the six months ended June 30, 2015 or $10.28 per fully diluted share, compared to net loss attributable to FXCM from continuing operations of $3.4 million or $0.09 per fully diluted share for the six months ended June 30, 2014.

July 2015 Trading Metrics from Continuing Operations*

Retail Customer Trading Metrics

  • Retail customer trading volume of $317 billion in July 2015, 13% lower than June 2015 and 33% higher than July 2014.
  • Average retail customer trading volume per day of $13.8 billion in July 2015, 16% lower than June 2015 and 33% higher than July 2014.
  • An average of 533,078 retail client trades per day in July 2015, 5% lower than June 2015 and 66% higher than July 2014.
  • Active accounts of 179,577 as of July 31, 2015, an increase of 2,272, or 1%, from June 2015, and an increase of 27,295, or 18%, from July 2014.
  • Tradeable accounts of 158,887 as of July 31, 2015, a decrease of 29,482, or 16%, from June 2015, and a decrease of 1,066, or 1%, from July 2014. During July 2015, the Company charged a dormancy fee to clients resulting in a number of accounts no longer qualifying as tradeable.

 

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Institutional Customer Trading Metrics

  • Institutional customer trading volume of $205 billion in July 2015, 10% lower than June 2015 and 22% lower than July 2014.
  • Average institutional trading volume per day of $8.9 billion in July 2015, 14% lower than June 2015 and 22% lower than July 2014.
  • An average of 48,666 institutional client trades per day in July 2015, 43% higher than June 2015 and 8% higher than July 2014.
Customer Trading Metrics from Continuing Operations excludes discontinued operations of FXCM Japan and FXCM Hong Kong.
*Customer Trading Metrics from Continuing Operations excludes discontinued operations of FXCM Japan and FXCM Hong Kong.

 

Results from operations for the quarter and the six months ended June 30, 2015 included a loss on derivative liability of $99.9 million and $392.3 million, respectively, a non-cash item relating to the increase in value of the Leucadia Letter Agreement. The Letter Agreement is a component of the financing package provided by Leucadia National Corp.

As previously mentioned, 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. 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.

Trading revenue from discontinued operations for the quarter ended June 30, 2015 was $20.5 million, compared to $21.1 million for the quarter ended June 30, 2014, a decrease of 3%. Net income attributable to FXCM from discontinued operations was $3.1 million for the second quarter 2015, which includes a $2.0 million gain on the sale of FXCM Japan, or $0.06 per fully diluted share, compared to net loss attributable to FXCM from discontinued operations of $0.5 million or $0.01 per fully diluted share for the second quarter 2014.

Trading revenue from discontinued operations for the six months ended June 30, 2015 was $46.8 million, compared to $47.7 million for the six months ended June 30, 2014, a decrease of 2%. Net loss attributable to FXCM from discontinued operations was $30.4 million for the second quarter 2015 or $0.63 per fully diluted share, compared to net income attributable to FXCM from discontinued operations of $2.4 million or $0.06 per fully diluted share for the six months ended June 30, 2014.

To see the official release from FXCM for more information click here.

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FXCM Q2 revenues hit from asset sales, but July volumes remain strong

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