Gain Capital Reports Slowdown in Financial Performance for First Quarter of FY 2019

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

Gain Capital

Gain Capital Reports Slowdown in Financial Performance for First Quarter of FY 2019

April 27, 2019

GainCapitalGain 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.

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

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.

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