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GAIN Capital Holdings, Inc (GCAP) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $18.90 million, or $ 0.39 a share in the quarter, against a net profit of $8.40 million, or $0.17 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $18.60 million, or $0.39 a share compared with a net profit of $16.90 million, or $0.35 a share in the last year period.
Revenue during the quarter plunged 48.44 percent to $59.60 million from $115.60 million in the previous year period. Operating margin for the quarter stood at negative 35.23 percent as compared to a positive 11.85 percent for the previous year period.
Operating loss for the quarter was $21 million, compared with an operating income of $13.70 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $13.40 million compared with $31.70 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 22.48 percent for the quarter compared to 27.42 percent in the last year period.
“Although the first two months of the year presented challenging market fundamentals for our business, characterized by low volatility and narrow average trading ranges, we remain optimistic about the growth prospects for the company,” commented Glenn Stevens, chief executive officer of GAIN Capital. “Market conditions improved in March and have continued to improve in April, with revenue capture returning to a normalized level consistent with our trailing twelve month average of $107 per million. Strong Q1 retail operating metrics, highlighted by 18 percent growth in client assets, reflect the opportunity for market share gains as we optimize our position as the #1 provider of retail FX in the U.S. As we look at ways to reduce costs and more efficiently allocate capital, we continue to focus on our organic growth strategy, investing in product enhancements and customer acquisition and retention initiatives to drive increased engagement and expand our global reach.”
Debt moves up marginally
GAIN Capital Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $126 million as on Mar. 31, 2017, up 3.97 percent or $4.81 million from $121.19 million on Mar. 31, 2016. Total debt was 8.44 percent of total assets as on Mar. 31, 2017, compared with 8.68 percent on Mar. 31, 2016. Debt to equity ratio was at 0.46 as on Mar. 31, 2017, up from 0.39 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
