GAIN Capital’s earnings rise in Q1 2018, as retail and institutional volumes grow

Maria Nikolova

The company registered a net income of $16.1 million, compared to a loss of $18.9 million a year earlier.

Online trading major Gain Capital Holdings Inc (NYSE:GCAP) saw a solid first quarter of 2018, as has been demonstrated by the set of financial and operating metrics the broker has just posted.

After a challenging final quarter of 2017, the company managed to register a (GAAP) net income of $16.1 million in the first three months of 2018. This compares to a net loss of $18.9 million registered in the corresponding period in 2017.

Net revenue was also robust, staging a rise of 79.4% year-over-year and reaching $106.9 million.

The financial metrics reflected solid operating results. Retail average daily volumes increased 31% year-over-year to $12.4 billion in the first quarter of 2018, whereas institutional ECN average daily volume increased 26% year-over-year to a record high of $14.8 billion. The number of new direct accounts rose 24% from the equivalent period in 2017.

GAIN’s Chief Executive Officer Glenn Stevens called the quarter a strong one and highlighted the growth in revenues, as well as the margin expansion to 31%, as well as the robust overall operating metrics, especially within the retail business.

“A return to more normalized volatility levels provided a market environment in which GAIN was able to showcase the benefits of our investment in organic initiatives over the past year. Customer engagement was up across the board, with retail average daily volume up 31% year-over-year and Institutional ECN average daily volume up 26% to reach a record high of $14.8 billion”, he noted.

During the first quarter of 2018, GAIN focused on returning capital to shareholders through dividends, which amounted to approximately $2.6 million. The company repurchased 580,064 shares of stock at an average price of $7.20 and returned a total of $6.8 million to shareholders in the form of share repurchases and dividends.

GAIN’s Board of Directors declared a quarterly cash dividend of $0.06 per share of the company’s common stock. The dividend is payable on June 19, 2018 to shareholders of record as of the close of business on June 12, 2018.

Let’s note that GAIN is embracing AI. It started implementing a new AI-driven hedging model in late Q1 in order to reduce quarterly RPM. This has been rolled out for FX in March, with additional asset classes to follow.

The broker also provided an update on how its services develop. For instance, the new web platform is now in Beta, whereas GAIN plans to roll out an Android version of its GetGo mobile app in May 2018.

Read this next

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

<