StoneX Group (Nasdaq: SNEX), the owner of GAIN Capital, published its financials from January to March, which is the second quarter of its fiscal 2024. In the three months, the platform generated $80.3 million in revenue, a 30 percent increase, from forex and contracts for differences (CFDs) offerings.
Trading Volume Declined
Although the FX and CFDs revenue increased significantly, there was a decline in the average daily volume (ADV). According to the official numbers released yesterday (Wednesday), the ADV of the FX and CFDs contracts for the three months on the platform declined by 23 percent to about $10.5 billion.
On the institutional business side of StoneX, it generated $7.6 million in revenue, a decline of 18 percent, from FX contracts. Meanwhile, in retail, the FX and CFDs contracts revenue jumped by 38 percent to $72.7 million. While institutional FX ADV dropped by 20 percent to $4 billion, retail FX and CFDs volume declined 24 percent to $6.4 billion.
“We are reporting solid results for our second fiscal quarter due in large part to the diversification of both our product offering and client base,” said Sean O’Connor, the CEO of StoneX.
A Solid Quarter
Headquartered in New York, StoneX (previously known as INTL FCStone) 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.
The group entered the retail FX and CFDs industry by acquiring GAIN Capital in 2020 for $236 million. The deal put the financial services giant in control of two major FX and CFDs brokerage brands: Forex.com and City Index.
In the three months ended in March, the total revenue of the financial services giant came in at about $22.1 billion, a jump of 37 percent. Considering all the expenses and commissions, the net operating revenue came down to $422.3 million, an uptick of 6 percent.
The group ended the quarter with a net income of $53.1 million, an increase of 27 percent. The basic and diluted earnings per share came in at $1.68 and $1.63, respectively.
