StoneX Group (Nasdaq: SNEX), which controls Forex.com and City Index brands, witnessed a decline of 3 percent year-on-year in its operating revenue from FX and CFDs contracts to $79.2 million for the fourth quarter of the fiscal year 2023 (FY23), ending on September 30.

When the annual figure was 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.

Decline in Trading Activities

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 10 percent.

Headquartered in New York, StoneX Group 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.

It entered the retail FX and CFDs industry by acquiring GAIN Capital 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.

The Retail Figures Are Worse

According to the latest figures, retail FX and CFDs contracts generated an operating revenue 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.

The retail revenues were generated on quarterly and annual ADV of $7.2 billion and $7.6 billion, respectively. These figures decreased by 13 percent and 18 percent, respectively.

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 slipped 3 percent to $50.7 million. The basic earnings per share lowered 6 percent to $2.43.

“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.”