The financial result of Q3-2018 for Forex.com parent GAIN Capital is out and it shows a favourable increase in their revenue. With the rise, the profit has also increased for the third quarter of 2018. Instead of having a major downfall in the volumes of trading and GTX institutional division, it witnessed profit.
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GAIN Capital had made $95.5 million in revenues from the total Q3. It is 13% more than Q2’s which made $84.2 million. The net profit of Q3 turned out to be $10.0 million whereas at the time of Q2, it was $6.5 million.
The financial results of GAIN capital surprisingly turn out to be good despite several reports claiming that the trading volumes have reached a record low in the last summer. So, it came as a surprise since the last reported trading volume had reached $149.6 billion after many years.
GAIN Capital made a recent a recent announcement. It planned on a$50 million share buyback at 5-15% premium that will be applied on the company’s share price. Some of the cash that Gain capital has acquired through selling their FX unit to 360T of Deutsche Boerse will be used for the buyback.
The Chief Executive Officer, Glenn Stevens stated that:
“While overall low market volatility continued to weigh on retail trading volumes during the quarter, our diverse product offering enabled strong revenue growth. Volatility in emerging markets, along with trade tensions, prompted high trading activity in emerging market currencies, as well as certain metals and index products, which helped to generate overall revenue capture of $164 per million for the quarter. In addition, our continued focus on organic, direct account growth and marketing initiatives helped deliver strong operating results in Q3, with new direct accounts up 28% year-over-year. As reiterated through our recently announced $50 million tender offer, we are firmly committed to executing a balanced capital allocation strategy to enhance shareholder value.”