FXCM share price drops 4.33% on results

The share price for online trading company FXCM fell 4.33% to $13.03 in early US trading, following the release of annual 2012 results that showed a fall in net income.

US GAAP net income was $3.0 million, or $0.11 per fully diluted Class A share for the fourth quarter 2012, compared with $3.2 million or $0.21 per fully diluted Class A share for the fourth quarter 2011, a decrease of 7% and 48%, respectively. The broker says the fall was primarily due to $1.8 million or $0.12 per fully diluted share in deferred tax benefits recognised by FXCM's Japanese subsidiary in the fourth quarter 2011 US GAAP results.

Under US GAAP, revenues for year-end December 31, 2012 increased 0.4% to $417.3 million, compared with $415.6 million for the corresponding period in 2011. US GAAP net income for year-end December 31, 2012 was $9.0 million, or $0.37 cents per fully diluted Class A share versus $12.7 million or $0.77 cents per fully diluted Class A share, a decrease of 30% and 52% respectively.

In more positive news, the company announced key metrics displaying a year-on-year growth in February 2013 volumes. Retail customer trading volume reached $359 billion in February, up 3% on February 2012. Average daily trading volume from retail was up 8% to $17.9 billion during the same comparative period.

The growth continued on the institutional side, where customer trading volume reached $132 billion in February 2013, 4% higher than February 2012. Average institutional trading volume per day of $6.6 billion in February 2013 was also 8% higher than last February.

Drew Niv, chief executive at FXCM, said: "Despite the subdued trading environment we saw for the entire year in 2012, we are pleased to have positioned our business so that we were still able to generate $102.1 million in after-tax cashflow from operations. With over $13 trillion in currencies traded at FXCM in 2012, we have built FXCM today into one of the largest FX players in the world."