GAIN Capital Holdings (GCAP), parent of the Forex.com trading site, recently released third quarter earnings. The company reported a profit of $3.2 million, or 8 cents per share in the quarter. Net revenue came in at $40 million in the quarter. During the same quarter last year, the company brought in revenue of $53.9 million. GAIN Capital earned a profit of 20 cents per share during the third quarter of 2011.
The biggest hit to the company in the quarter was the drop in retail trading. Lower volatility and decreased led to GAIN Capital earning just $34.3 million in retail trading revenue versus $52.2 million a year ago. Total retail trading volume was $278.7 billion compared to $447.9 billion in the same quarter last year. GAIN Capital was able to earn a solid profit thanks to a very good quarter in their institutional business. Total institutional trading volume nearly doubled to $503.7 billion this year compared to just $260.0 billion last year.
Glenn Stevens, CEO of GAIN Capital, said “In the third quarter we launched new products and services in both our retail and institutional businesses, while lowering our operating expenses in our core retail business. As a result, we were able to achieve an adjusted EBITDA of $6.2 million and an adjusted EBITDA of 15.5% in this period of muted volatility and difficult market conditions.”
GAIN successfully launched a new CFD platform called TRADE in September. GAIN will continue to roll out this innovative during the fourth quarter.
For more information on GAIN Capital’s Third Quarter earnings report click here for the full press release.