StoneX Group (Nasdaq: SNEX), a financial services provider and owner of GAIN Capital, reported a 46 percent yearly jump in its total revenue between January and March, which is its second quarter of fiscal 2022. It came in at $16.38 billion compared to the previous year’s $11.24 billion.
The operating revenue was $544.7 million. It was 16 percent higher than the same quarter of the previous year.
StoneX acquired GAIN Capital in mid-2020 and now owns some major forex and contracts for differences (CFDs) trading brands. The group reported that its operating revenues generated from FX and CFD instruments jumped by 32 percent in the quarter. In absolute terms, it came in at $98.9 million, primarily due to an $18.8 million increase in retail operating revenue.
Impact of GAIN Acquisition
StoneX is headquartered in New York, but businesses from GAIN subsidiaries were originally denominated in pound sterling. Its group elaborated that it had suffered a loss of $1.2 million on derivative positions used to mitigate its GBP exposure in GAIN to other StoneX entities, which are USD denominated entities.
in addition, StoneX elaborated that its management considered the amortization expense related to the intangible assets of GAIN Capital during the acquisition. They identified and recorded them as part of the acquisition and the net loss on the internal merger of the operations of Gain’s UK subsidiaries.
Considering all StoneX business divisions, the group ended the quarter with $64 million in net profit, which is 16 percent higher. The basic earnings per share came in at $3.18, while the diluted one was at $3.11. Both of them were 13 percent and 14 percent higher, respectively.
“Our broad product offering and diversified client base, combined with generally favorable market conditions, helped us deliver record core operating results in the second quarter of fiscal 2022,” said Sean M. O’Connor, StoneX Group’s CEO.
