GAIN Capital Holdings, Inc (GCAP) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $4.70 million, or $ 0.11 a share in the quarter, against a net profit of $1 million, or $0.05 a share in the last year period. On adjusted basis, net loss for the quarter stood at $5.80 million, or $0.12 a share compared with a net profit of $15.30 million, or $0.31 a share in the last year period.
Revenue during the quarter plunged 43.64 percent to $72.20 million from $128.10 million in the previous year period. Operating margin for the quarter stood at negative 6.23 percent as compared to a positive 9.37 percent for the previous year period.
Operating loss for the quarter was $4.50 million, compared with an operating income of $12 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.30 million compared with $30.10 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1893 basis points in the quarter to 4.57 percent from 23.50 percent in the last year period.
“The challenging market conditions of the third quarter resulted in lower than expected average daily volumes and revenue capture," commented Glenn Stevens, chief executive officer of GAIN Capital. "However, the volatility outlook is improving as a result of several market drivers including Brexit, global interest rate uncertainty and the U.S. elections,” continued Mr. Stevens. "In addition, we are executing on several key initiatives that we believe will enhance our customer experience which will lead to increased customer engagement and drive long-term value for both clients and shareholders," concluded Mr. Stevens.
Debt moves up marginally
GAIN Capital Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $123.50 million as on Sep. 30, 2016, up 2.18 percent or $2.63 million from $120.87 million on Sep. 30, 2015.
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