GAIN Capital registers fivefold Q/Q jump in income in Q4 2015, but revenues slide
Gain Capital Holdings Inc (NYSE:GCAP), one of the major investment services providers in the United States, has reported its financial metrics for the fourth quarter and full year 2015.
The final three months of the year brought a steep rise in profits, accompanied by a double-digit decrease in revenues. Regarding the full year, it is worth noting that the loss registered in the second quarter weighed on full year profits. Moreover, after making some corrections to its estimates, GAIN said the loss for the second quarter of 2015 was bigger than initially stated and was indeed $12.9 million.
Let’s examine the particular metrics (after restatement).
Fourth Quarter 2015
- Net revenues for the period amounted to $102.8 million, down 19.8% from the result registered in the third quarter of 2015. In annual terms, the drop was 10.8%.
- Net income for the period was $15.5 million, which is five times higher than in the preceding quarter but 31% lower than in the final quarter of 2014.
- Adjusted EBITDA for the period reached $21.5 million, whereas earnings per diluted share were $0.32.
(Important note – GAIN Capital has submitted a separate SEC filing today adjusting its financial data for 2014 and 2015. The chart reflects the changes.)
Full Year 2015
- Net revenue was $435.4 million in the twelve months to December 31, 2015, up 17.9% from 2014 levels.
- Net income amounted to $10.2 million, down 59% from the result of $24.9 million recorded in 2014.
- Adjusted EBITDA reached $80.5 million, whereas earnings per diluted share were $0.22.