Gain Capital Reports Solid Financial Performace for FY 2018, Full Year Profit at $29 Mn Against Loss of $11 Mn in 2017

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 Reports Solid Financial Performace for FY 2018, Full Year Profit at $29 Mn Against Loss of $11 Mn in 2017

March 1, 2019

Gain CapitalNew Jersey-based online FX and CFD retail broker, Gain Capital Holdings, Inc. (NYSE: GCAP), has reported its final quarter and full year financial results, that ended on 31st December 2018.

The group has managed to improve its performance year-over-year across various parameters during the last three months period. Detailing the result, the group posted net revenue under US GAAP for Q4, 2018 at $79.9 million, higher by 27 per cent year-over-year to $62.7 million in Q4, 2017. Further, the full year revenue came in at $358.0 million, which is 28 per cent higher compared to $278.2 million in fiscal 2017. 

However, the net profits on both the time frame, quarterly and yearly were flat and upbeat. In the fourth and final quarter, the group reported a mitigated net loss of $4.6 million or $0.11 per share compared to adjusted net loss of $4.8 million in the Q4, 2017. In the yearly timeframe, on the back of stronger operating performance, the group yielded a net profit of $29.1 million, or $0.66 per share, compared to a net loss of $11.3 million in fiscal 2017. 

The company also reported that in full-year 2018, it returned a total of $73.8 million to shareholders in the form of share repurchases and dividends. It has also listed its long-term future outlook and expects revenue to grow up to $420 to $460 million by 2021 and EPS of $2.15 to $2.40 from the current $0.66. 

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.”

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