Retail forex broker FXCM, Inc. has published its Q1 report, showing good results with revenues reaching $71.5 million (rising 9% over the quarter) and EBITDA of $10.3 million.
This optimism was calmed down by high rates of the Leucadia loan interest from January, remaining a heavy burden on FXCM’s results. Interest expense reached $20.6 million during the quarter – doubling FXCM’s EBITDA earnings.
As for the Q1 highlights from the official report:
- U.S. GAAP net revenues from continuing operations of $71.5 million
- U.S. GAAP net income attributable to FXCM Inc. from continuing operations of $61.3 million or $10.94 per fully diluted share, including a $110.8 million gain on derivative liability
- U.S. GAAP net revenues from discontinued operations of $6.5 million
- U.S. GAAP net loss attributable to FXCM Inc. from discontinued operations of $11.5 million or $2.06 per fully diluted share
- Adjusted EBITDA from continuing and discontinued operations of $10.3 million
Strong combined operating cash position of $235.7 million and regulatory surplus of $107.2 million at March 31, 2016
April 2016 Customer Trading Metrics from Continuing Operations:
- Retail customer trading volume(3) of $287 billion in April 2016, 1% lower than March 2016 and 6% lower than April 2015.
- Institutional customer trading volume(3) of $75 billion in April 2016, 10% lower than March 2016 and 83% higher than April 2015.
The question of loan is a little bit more complex. As the payments are dependent on the perceived ‘value’ to be received by Leucadia, amounts per quarter are constantly adjusted. The loan repayment reached only $8 million during the first quarter – FXCM informs about a gain of $111 million on the loan.
Athough FXCM is doing a good job, when reducing the results on revenues, these expenses are still a large burden for the company to get rid of its trap, where it got after the Swiss National Bank cap removal. Debt of FXCM to Leucadia is actually at $193 million, so it will take some time for the company to repay it fully.
To see the official statement, click here.
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