By Najat Kantouar

CAB Payments Holdings shares fell after the company posted lower-than-expected revenue for the third quarter and warned that it anticipates a sharp decline in volumes from international developmental organizations in the remainder of the year.

In early trading, London-listed shares were down 7%, at 112.60 pence. Year-to-date, shares have risen 34%.

The fintech group, which specializes in cross-border payments, said Wednesday that revenue for the period was in line with its expectations for July and August, but marginally below its expectations by the end of September.

The company previously expected that volumes would increase in the fourth quarter due to the usual seasonality, despite reduced international developmental organization client budgets. However, it now expects that this volume increase is unlikely to materialize due to a challenging environment and political factors.

In the nine months to Sept. 30, the group's foreign-exchange and payments volumes grew 9% on a combined basis, consisting of flat growth in emerging markets and 15% growth in developed markets. In comparison, marketwide global payment volumes fell 6%, the company said.

Meanwhile, CAB payments said it was still in talks with U.S. listed StoneX regarding a possible takeover proposal valuing the company at nearly $500 million. However, there can be no certainty that an offer will be made, nor as to the terms on which any offer may be made, it said. Under U.K. takeover rules, StoneX has until 1700 GMT on Nov. 7 to make a firm offer or walk away.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

October 30, 2024 04:51 ET (08:51 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.