StoneX reports “strongest core operating performance in our history”

Rick Steves

StoneX’s effort to build a diversified global franchise with growth in income across all operating segments has proven fruitful. The acquisition of GAIN Capital in 2020 for $236 million in equity value provided the much-needed access to the retail FX/CFD brokerage business.

StoneX Group has reported its financial results for Q2 2021, where it highlighted record quarterly operating revenues of $471.4 million (up 29%), quarterly net income of $55.3 million (up 41%), and quarterly diluted EPS of $2.73 per share (ROE of 26.7%).

Operating revenues from FX/CFD contracts increased $65.8 million, to $74.7 million in the three months ended March 31, 2021, as a result of an incremental $71.2 million in retail FX/CFD contracts operating revenues resulting from the acquisition of Gain Capital which was partially offset by lower FX operating revenues in the firm’s legacy FX prime brokerage business.

Sean M. O’Connor, CEO of StoneX Group Inc., commented: “I believe this quarter represents the strongest core operating performance in our history, with record operating revenues, a 41% increase in net income versus the prior year, and a 26.7% ROE on stated book value.

“This quarter demonstrates our efforts to build a diversified global franchise with growth in operating revenues and income across all of our operating segments. We continue to increase both our number of clients and their underlying volumes, which we feel positions us for success in the future.”

The global brokerage and financial services firm providing execution, risk management, and advisory services, market intelligence, and clearing services is the new parent company of GAIN Capital after having completed the $236 million (in equity value) acquisition in July 2020.

The deal represented a 70% premium to the closing share price of GAIN’s shares on February 26, 2020 and a 60% premium to the volume-weighted average price of GAIN’s stock in the 30 trading days ending on February 26, 2020.

From that moment on, StoneX became a leader in the retail FX brokerage business. All earnings results reported by StoneX have shown a massive jump in revenue when compared to pre-GAIN Capital reports.

Still, there has been revenue growth in between quarters since the retail FX/CFD brokerage business was acquired. The operating revenues in the three months ending on 31 December 2020 were $59.8 million against $74.7 million in the three months ended March 31, 2021. This is a respectable 25% growth.

In order to make the best out of its acquisition, StoneX appointed Nick Saunders from Trading 212, where he was Chief Executive Officer of the UK business for six years. He was responsible for the broker’s launch of deliverable equities with zero commission.

Read this next

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

<