FXCM revenues up; gets increase in credit facility

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FXCM reported a 5% rise in third-quarter revenues on last year at $115 million, despite falling volumes across its retail and institutional businesses.

In its third-quarter report published today, the New York-based margin forex broker said its net income on a US GAAP basis was up 33% at $4.5 million, compared with $3.4 million for third-quarter 2011. On an adjusted pro forma EBITDA, the third quarter was up 18% at $37.2 million, compared with $31.4 million for third-quarter 2011. But adjusted pro forma net income was down 27% to $12.5 million in the third quarter, compared with $17.1 million for third-quarter 2011.

Adjusted pro forma results assume the conversion and exchange of all FXCM Holdings, LLC units into FXCM Inc. Class A common stock, resulting in the elimination of the non-controlling interest and the corresponding adjustment to the company's tax provision. In addition, adjusted pro forma results eliminate certain non-recurring charges and equity-based compensation expense regarding a grant of stock options at the time of FXCM's initial public offering in December 2010.

In the statement, FXCM said it received additional commitments from a group of banks and has increased its credit facility to $155 million. In addition, some of the terms of the credit facility were modified to, among other things, provide additional flexibility regarding financing and investment initiatives.

"We are pleased with being able to increase the size of our credit facility," said Drew Niv, chief executive in New York. "We now have seven banks in the facility and received a great deal of demand as we sought to increase its size. The increased size of the facility will allow us to conduct our current initiatives on a larger scale."

October 2012 Operating Metrics

Retail Trading Metrics

• Average daily retail trading volumes were $14.1 billion in October 2012, 13% lower than October 2011.
• An average of 341,293 retail client trades a day were seen in October 2012, 26% lower than October 2011.
• Tradable accounts of 203,714 as of October 31, 2012, up 6% from October 2011.

Institutional Trading Metrics

• Institutional customer trading volume was $53 billion in October 2012, 69% lower than October 2011.
• Average daily institutional trading volume was $2.3 billion in October 2012, 72% lower than October 2011.
• An average of 5,850 institutional client trades were seen a day in October 2012, 86% lower than October 2011.

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