StoneX Withdraws from Potential Acquisition of CAB Payment

StoneX Q1 FY2024: Revenues Up 20% to $784.2M

StoneX Group Inc. has reported robust financial results for the Q1 FY2024, which concluded on December 31, 2023.

The company witnessed a substantial increase in operating revenues across various segments. Operating revenues from FX/CFD contracts surged by $25.8 million, marking a 53% rise to reach $74.6 million during the three months ended December 31, 2023, compared to $48.8 million in the same period of the previous year. This notable growth was primarily because of a remarkable 73% increase in the FX/CFD Revenue per Million (RPM), partially offset by a 15% decline in the Average Daily Volume (ADV) of FX/CFD contracts.

Listed derivatives also contributed to the positive financial trend, with operating revenues increasing by $9.4 million, or 9%, totaling $109.2 million during the same period. This growth was because of a substantial 26% increase in listed derivative contract volumes, although it was tempered by a 13% decrease in the average rate per contract compared to the corresponding period in 2022.

StoneX reported a $2.0 million, or 5%, increase in operating revenues from OTC derivatives, reaching $44.5 million in the three months ended December 31, 2023. This upturn was because of a 14% increase in OTC derivative contract volumes despite a 9% decline in the average rate per contract compared to the prior year’s period.

StoneX (SNEX) Q1 FY2024: Revenues Up 20% to $784.2M

Payments also contributed positively to the overall financial performance, with operating revenues increasing by $5.2 million, or 10%, totaling $59.4 million in the three months ended December 31, 2023. This growth was primarily because of the 10% increase in the Revenue per Million (RPM) in comparison to the same period in 2022.

However, operating revenues from physical contracts experienced a decline of $8.3 million, or 14%, reaching $51.4 million in the three months that ended December 31, 2023. This decrease was because of declines in both the physical agricultural and energy, as well as the retail precious metals businesses, compared to the corresponding period in 2022.

Across all segments, StoneX reported a significant increase in operating revenues, reaching $784.2 million in the three months ended December 31, 2023. This marks a 20% increase compared to the same period in the previous year, where operating revenues were $654.8 million.

Sean M. O’Connor, CEO of StoneX, expressed satisfaction with the company’s strong start to fiscal year 2024. Net income for the period amounted to $69.1 million, representing a 19.3% return on equity. The company achieved a 20.5% return on tangible book value and reported diluted earnings per share (EPS) of $2.13. Excluding a $23.5 million gain on acquisition in the comparable prior year period, diluted EPS increased by an impressive 28.0% over the prior year.

O’Connor commented on the positive market environment, emphasizing good client engagement and increased interest earnings on client float. He concluded by stating, “We are pleased to see that our business continues to deliver what we believe to be superior returns to our shareholders.” The financial results underscore StoneX’s resilience and success in navigating dynamic market conditions.

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