Abstract：StoneX revenues from FX/CFDs down 31% in Apr-Jun 2021 quarter.
New York based brokerage group StoneX has reported its fiscal third quarter 2021 results, indicating that revenues slowed from the previous quarter, especially in its FX and CFDs brokerage business – which consists mainly of the Forex.com and City Index brands, acquired as part of the $236 million acquisition of Gain Capital in mid 2020.
Overall, StoneX operating revenues for its fiscal Q3 were $431.5 million, down 8% from Q2s $471.4 million. However in the FX/CFDs unit, revenues were down 31% to $51.8 million, versus $74.7 million the previous quarter.
Forex.com (and City Index) client trading volumes came in at $9.65 billion ADV in April-June, down by 13% from $11.14 billion in January-March 2021 – translating into about $202 billion of monthly FX/CFD trading volumes this past quarter at the company.
The results of the three months ended June 30, 2021 include a gain of $3.3 million related to the acquisition of Gain Capital in the fourth quarter of fiscal 2020, due to an adjustment to the final liabilities assumed, resulting in an adjustment from the initially determined values as of August 1, 2020.
In his remarks, StoneX CEO Sean OConnor preferred to ignore the QoQ comparison and focus on the increase in activity from fiscal Q3 last year:
“We continued to deliver strong financial results in our fiscal third quarter with a 34% increase in operating revenues and an ROE in excess of our 15% target. I am especially pleased that our year-to-date earnings are up 18% versus last years exceptional results which were buoyed by the extreme market volatility resulting from the onset of the COVID-19 pandemic in early 2020. The continued growth in our trading volumes across nearly all of our platforms, as well as the increase in our client equity, which now stands at nearly $6 billion, reflect the expansion of our customer footprint and their deeper engagement with StoneX.”
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