GAIN Capital Holdings, Inc. (NYSE:GCAP), a global provider of online trading services, announced today its earnings for the quarter and year ended December 31, 2010.

Financial highlights for thefull year 2010 include:

  •  Record Net Revenue of $189.1 million; growth of 23.4% compared to 2009
  •  Net Income of $37.8 million (Diluted EPS of $1.00); net income growth of 35.0% compared to 2009
  •  Adjusted Net Income([1]) of $33.9 million; growth of 28.9% compared to 2009
  •  Record Client Assets([2]) of $256.7 million at December 31, 2010; growth of 28.4% compared to 2009

2010 was a pivotal year for GAIN. We grew our business organically and also initiated our market consolidation strategy with the acquisitions of the retail forex businesses of MG Financial and CMS Forex. We expanded our global footprint, opening offices in Hong Kong, Singapore and Sydney, and increased our product offering with the addition of new currency pairs, as well as equity indexCFDs (contracts for difference) outside of the United States. We also launched GAIN GTX, our new ECN for institutional clients. In addition to our operational and strategic accomplishments, we reached a corporate milestone with our initial public offering and listing on the New York Stock Exchange in December 2010. We look forward to the opportunities ahead as we operate in the public markets,saidGlenn Stevens, chief executive officer.

We delivered a strong performance in 2010, growing revenue and adjusted net income at healthy rates while at the same time increasing client assets to an all-time high. We also continued to invest in our businesses to drive long term growth, said Henry Lyons, chief financial officer.

Financial Results:

(Note: Percentage changes are referenced to comparable period in fiscal year 2009.)

  •  Net Revenue of $40.9 million for the fourth quarter and $189.1 million for the full year, representing growth of 3.5% and 23.4%, respectively
  •  Net Income of $56.8 million for the fourth quarter and $37.8 million for the full year, representing growth of 17.1% and 35.0%, respectively
  •  Adjusted net income(1) of $4.0 million for the fourth quarter and $33.9 million for the full year, representing a decline of 33.3% and growth of 28.9%, respectively

Business Metrics:

(Note: Percentage changes are referenced to comparable period in fiscal year 2009.)

  •  Total Trading Volume was $470.2billion for the fourth quarter and $1.6trillion for the full year, representing growth of 47.7% and 25.5%, respectively
  •  Traded Retail Accounts were 36,241 for the fourth quarter and 64,313 for the full year, representing growth of 24.5% and 21.9%, respectively
  •  Funded Retail Accountswere 85,562at December 31, 2010, representing growth of 42.2%
  •  Client Assets were $256.7 million at December 31, 2010, representing year over year growth of 28.4%

 


([1])Adjusted net income is a non-GAAP financial measure. For a reconciliation of adjusted net income to net income, a financial measure calculated in accordance with GAAP, please see Reconciliation of Net Income to Adjusted Net Income below.

([2]) For definitions of the operating metrics discussed in this earnings release, see the appendix to the presentation entitled 4th Quarter and Full Year 2010 Financial and Operating Results filed as an exhibit to our Form 8-K on February 15, 2011.

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