The quarterly financial reports of retail forex broker FXCM Inc (NYSE:FXCM) have been increasingly difficult to decipher.
On paper, FXCM just reported a $60.5 million net profit for Q2 on revenues of $70.6 million. Which looks great. However a number of accounting charges mask what is really going on.
Our analysis shows that FXCM's 'business' is indeed doing OK, but it is having trouble dealing with its large loan from Leucadia. In Q2 FXCM paid millions of dollars to Leucadia (in fact, that's where most of its EBITDA went), but FXCM still owes Leucadia the same amount it did at the end of Q1.
https://www.leaprate.com/2016/08/fxc...192-5-million/
On paper, FXCM just reported a $60.5 million net profit for Q2 on revenues of $70.6 million. Which looks great. However a number of accounting charges mask what is really going on.
Our analysis shows that FXCM's 'business' is indeed doing OK, but it is having trouble dealing with its large loan from Leucadia. In Q2 FXCM paid millions of dollars to Leucadia (in fact, that's where most of its EBITDA went), but FXCM still owes Leucadia the same amount it did at the end of Q1.
https://www.leaprate.com/2016/08/fxc...192-5-million/