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SNEX Nasdaq· StoneX Group Inc
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SNEX Nasdaq· StoneX Group Inc
Earnings report Q2 2023

SNEX Sees Significant Revenue Increase, Led by Institutional Segment

Segments of revenue

SNEX's operating revenues rose by $30.7 million, or 24%, to $158.4 million. The net operating revenues also increased by $31.1 million, or 26%, to $151.7 million. For the three months ending June 30, 2023, operating revenues increased by $248.1 million, or 47%, to $776.9 million. The Institutional segment led this growth, contributing an additional $172 million. The Commercial and Global Payments segments also saw increases, adding $82.5 million and $8.9 million respectively. However, the Retail segment experienced a decline of $17 million.

Strengths

The increase in operating revenues was primarily driven by an 11% increase in the average daily volume and a 10% increase in the RPM traded. The company also saw growth in client balances and earned consulting fees for market intelligence and risk management services. The company's diverse client base, spread over 180 countries, also contributes to its strength.

Challenges

Despite the overall increase in revenues, the Retail segment of the company saw a decline of $17 million. The company's variable expenses, excluding interest, remained at 23% of operating revenues, indicating a potential area for improvement.

Noteworthy

The company's common stock trades on The NASDAQ Global Select Market under the symbol "SNEX". It's also worth noting that the company serves a diverse group of clients, including commercial entities, asset managers, insurance companies, institutional investors, and government organizations.

Summary

SNEX has reported a substantial increase in its operating and net operating revenues, primarily driven by increases in average daily volume and RPM traded. The Institutional segment was the main contributor to this growth. Despite the decline in the Retail segment, the company's diverse client base and additional earnings from consulting fees demonstrate its robust financial performance. However, the unchanged variable expenses indicate a potential area for improvement.

Source documents

Form 10-Q  filed on Aug 02, 2023
55 pages scanned

Reference data

Company financials Q2 revenue 16.37B
Analyst estimates Q2 EPS missed by NaN%
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