FX and CFDs Revenue of StoneX Declines in Q4: ADV Takes 11% Hit

<p dir="ltr">StoneX Group (Nasdaq: SNEX), which controls Forex.com and City Index brands, witnessed a 3 percent year-on-year decline in its operating revenue from forex and contract for differences (CFDs) contracts to $79.2 million for the fourth quarter of fiscal 2023, ended on September 30.</p><p dir="ltr">When the annual figure is compared, the company generated $261.9 million from FX and CFDs in FY23 compared to $339.3 million in the previous year, a decline of 23 percent. Meanwhile, the overall operating revenue of the group for the three months came in at $778 million, 33 percent higher.</p><p dir="ltr">Decline in Trading Activities</p><p dir="ltr">The official announcement by the StoneX Group yesterday (Wednesday) revealed that the primary reason behind the decline in the FX and CFDs revenue was the trading activity decline. The average daily volume (ADV) of FX and CFDs contracts in the three months came in at $10.9 billion, a drop of 11 percent. The quarterly figures were below the annual ADV of $11.9 billion, which decreased by 10 percent.</p><p dir="ltr">Headquartered in New York, <a href="https://www.financemagnates.com/tag/stonex/">StoneX Group</a> is a major financial services conglomerate with a presence in six areas: commercial hedging, global payments, securities, physical commodities, foreign exchange, and clearing and execution services.</p><p dir="ltr">It entered the retail FX and CFDs industry by <a href="https://www.financemagnates.com/forex/brokers/stonex-completes-236-million-gain-capital-acquisition-deal/">acquiring GAIN Capital</a> in 2020 for $236 million. The deal put the New York-based giant in control of two major FX and CFDs brokerage brands: Forex.com and City Index.</p><p dir="ltr">The Retail Figures Are Worse</p><p dir="ltr">According to the latest figures, <a href="https://www.financemagnates.com/forex/stonexs-fxcfds-revenue-drops-38-in-q2/">retail FX and CFDs contracts generated an operating revenue</a> of $67.8 million between July and September, a decline of 10 percent. This figure for the year came in 28 percent lower at $222.5 million.</p><p dir="ltr">The retail revenues were generated on quarterly and annual ADV of $7.2 billion and $7.6 billion, respectively. These figures went down by 13 percent and 18 percent, respectively.</p><p dir="ltr">Despite the FX and CFDs revenue slump, the company generated a quarterly pre-tax income of $75.4 million, 14 percent higher. However, the net figure plummeted by 3 percent to $50.7 million. The basic earnings per share lowered 6 percent to $2.43.</p><p dir="ltr">“These results were driven by continued client engagement and increased interest earnings on our client float, despite generally moderating volatility,” said the CEO of StoneX Group, Sean O’Connor. “We believe that our diversified business model continues to position us to deliver strong results to our shareholders in the current market environment.”</p>

This article was written by Arnab Shome at www.financemagnates.com.