FXCM Inc (NYSE: FXCM), a leading online provider of foreign exchange, or FX, trading and related services, today announced for the quarter ended March 31, 2011, revenues increased $17.7 million or 23% to $94.7 million, compared to $77.0 million for the quarter ended March 31, 2010. Adjusted Pro Forma EBITDA for the first quarter 2011 was $25.5 million, an increase of $0.4 million or 2%, compared to $25.1 million, for the first quarter 2010. Adjusted Pro Forma Net Income was $13.7 million, or $0.18 per share on a fully exchanged, fully diluted basis, for the first quarter 2011 compared to $14.7 million, or $0.20 per share, for the first quarter 2010, a decrease of 7%.
First Quarter Highlights:
- 2011 first quarter revenues of $94.7 million, up 23% versus the same period in 2010
- Adjusted Pro Forma EBITDA of $25.5 million, up 2% versus the same period in 2010
- Adjusted Pro Forma net income of $13.7 million or $0.18 per fully diluted share, down 7% versus the same period in 2010
- Customer equity of $775.1 million, up 100% from same period in 2010
- Active accounts of 139,900, up 15% from the same period in 2010
- Completed the acquisition of FXCM Japan, Inc., the retail FX business of GCI Capital, a FX provider in Japan with over 17,000 active accounts and $114.0 million in customer equity
- Declared a quarterly dividend of $0.06 per share of Class A common stock
Adjusted Pro Forma results assume the conversion and exchange of all FXCM Holdings, LLC units into FXCM Inc. Class A shares, resulting in the elimination of the non-controlling interest and the corresponding adjustment to the entity’s tax provision. In addition, Adjusted Pro Forma results eliminate certain compensation charges relating to FXCM Inc.’s initial public offering.
U.S. GAAP net income for the first quarter 2011 was $2.8 million or $0.16 per fully diluted share, which was fully attributable to FXCM Inc. Following the completion of FXCM Inc.’s initial public offering on December 7, 2010, FXCM Holdings, LLC is consolidated into the results of FXCM Inc. Prior to the initial public offering, FXCM Inc. did not engage in any business or activities except in connection with its formation.
“FXCM delivered strong growth in the quarter — growing revenues by 23% and active accounts by 15% versus the first quarter 2010,” said Drew Niv, Chief Executive Officer.
“We also expanded our presence geographically with the acquisition of the retail FX business of GCI Capital, adding over 17,000 active accounts and $114 million in customer equity and giving us a much stronger position in Japan, the world’s largest retail FX market,” he continued.
In addition FXCM Inc. today announced certain key operating metrics for April 2011 for its retail and institutional foreign exchange business. Monthly activities included:
April Monthly Metrics:
Retail Trading Metrics
- Retail customer trading volume(1) of $293 billion in April 2011, 7% lower than March 2011 and 33% higher than April 2010.
- Average retail customer trading volume(1) per day of $14.0 billion in April 2011, 2% higher than March 2011 and 40% higher than April 2010.
- An average of 322,653 retail client trades per day in April 2011, 1% lower than March 2011 and 21% higher than April 2010.
- Active accounts(2) of 158,002 as of April 30, 2011, an increase of 18,102 or 13% from March 2011, and an increase of 34,112 or 28% from April 2010.
Institutional Trading Metrics
- Institutional customer trading volume(1) of $62 billion in April 2011, 21% lower than March 2011 and 9% higher than April 2010.
- Average institutional trading volume(1) per day of $3.0 billion in April 2011, 13% lower than March 2011 and 14% higher than April 2010.
- An average of 6,782 institutional client trades per day in April 2011, 2% lower than March 2011 and 147% higher than April 2010.
- More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company’s corporate website, www.fxcm.com.
This operating data is preliminary and subject to revision and should not be taken as an indication of the financial performance of FXCM Inc. FXCM undertakes no obligation to publicly update or review previously reported operating data. Any updates to previously reported operating data will be reflected in the historical operating data that can be found on the Investor Relations page of the Company’s corporate website, www.fxcm.com.
(1) Volume that FXCM customers traded in period translated into US dollars.
(2) An account that has traded at least once in the previous twelve months.