Gain Capital, the global provider of online trading services has posted the first quarterly result ending on 31st March 2019 for the FY 2019. The year 2019 started on weaker note reporting losses for its operation. The firm in FY 2018 managed a turnaround in operation posting strong financial results.
The net revenue during the period came in at $38.4 million, which is 61 per cent lower compared against the first quarter of 2018, which is $98.4 million. The net loss during the period came in at $28.4 million against the profit of $11.9 million in the first quarter of FY 2018. This also translates to a loss of $0.76 per share.
The loss in operations is attributed to the slowdown in trading activity during the quarter, with OTC ADV reported at 7.7 million in 2019, which is 38 per cent lower compared to the same period last year.
Commenting on the weak results, Glenn Stevens, Chief Executive Officer of GAIN Capital said:
“Despite unfavourable market conditions impacting our volume and RPM for the quarter, including the CVIX reaching a five year low with Eurodollar trading in its narrowest quarterly range on record, growth initiatives are beginning to bear fruit. Our increased marketing investment delivered robust growth in new direct accounts, which were up 38%, even amid the challenging macro environment.”
“We remain focused on our long-term goals and plan to invest in new client acquisition and retention, leveraging our powerful brand assets, innovating the trading experience and increasing our focus on our top clients. We are confident that we are well positioned to benefit upon the return of more normal market conditions.”
Gaitame Reports 15% Uptick in Revenue in Q1, FY 2019
Compagnie Financière Tradition, the Japan-based FX broker Gaitame’s parent organisation has released its financial results for the first quarter of this year, reporting an uptick in trading activity and performance.
The consolidated revenue came in at CHF 240.4 million, which slightly 3.3 per cent higher (in constant currency) compared to the consolidated revenue in the first quarter of 2018.
The group’s FX trading business for retail investors, Gaitame reported 15.5 per cent higher adjusted revenue. Although the group failed to continue the momentum of the last two quarters, which witnessed an uptick of 27.8 per cent year-on-year in the final quarter and 58 per cent achieved in the third quarter.