Lower trading volumes eat into StoneX FX/CFD revenues in Q4 FY23
StoneX Group Inc. (NASDAQ:SNEX), the owner of retail Forex brands such as FOREX.com and City Index, has announced its financial results for the fiscal year 2023 and fourth quarter ended September 30, 2023.
Operating revenues derived from FX/CFD contracts declined $2.2 million, or 3%, to $79.2 million in the three months ended September 30, 2023 compared to $81.4 million in the three months ended September 30, 2022, principally due to an 11% decline in the FX/CFD contracts ADV, partially offset by a 10% increase in the FX/CFD RPM.
Operating revenues derived from OTC derivatives increased $10.9 million, or 22%, to $59.9 million in the three months ended September 30, 2023 compared to $49.0 million in the three months ended September 30, 2022. This increase was the result of a 24% increase in OTC derivative contract volumes, most notably in agricultural and soft commodities, which was partially offset by a 2% decline in the average rate per contract compared to the three months ended September 30, 2022.
Operating revenues from global payments increased $9.3 million, or 21%, to $52.9 million in the three months ended September 30, 2023 compared to $43.6 million in the three months ended September 30, 2022, principally driven by a 26% increase in the RPM, partially offset by a 3% decrease in the ADV.
Across all segments, operating revenues increased $194.6 million, or 33%, to $778.0 million in the three months ended September 30, 2023 compared to $583.4 million in the three months ended September 30, 2022.
Quarterly net income was $50.7 million, down from $52.3 million registered in the year-ago quarter.
Sean M. O’Connor, the Company’s CEO, stated:
“We achieved solid results in our fiscal fourth quarter, with pre-tax earnings of $75.4 million, up 14% compared to the prior year quarter. These strong fourth quarter results contributed to a record full fiscal year financial performance, with diluted earnings per share of $11.18, up 12%, an increase in net asset value per share of $13.61, up 26%, and an ROE of 19.5% for the year. These results were driven by continued client engagement and increased interest earnings on our client float, despite generally moderating volatility.
We believe that our diversified business model continues to position us to deliver strong results to our shareholders in the current market environment.”