Kabu Posts Flat Preliminary Results for June

The MUFG subsidiary reported a minor decrease in revenues as investors failed to match their Q1 trading levels

Kabu, an online securities broker, released its preliminary financial results for June of 2018 on Wednesday. The firm, which is a subsidiary of the Mitsubishi UFJ Financial Group, had a fairly stagnant month, with its results showing a slight decrease in May’s revenues.

In May of this year, Kabu reported that it had made ¥649 million ($5.78 million) in revenue from broker commission fees. Last month that number shrank to ¥605 million ($5.38 million), representing a nearly seven percent month-on-month decrease.

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This shrinking was mostly due to a decline in stocks trading in June. Commissions from stocks trading shrank by ¥46 million ($410,000), from ¥365 million ($3.25 million) in May to ¥319 million ($2.84 million) in June.

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Stocks down, futures up

The decline in stocks trading was countered by a ¥10 million ($90,000) increase in revenue from futures and options trading. As the reader can tell, this was not enough to fill the gap left by losses in stocks trading, but it was still an increase on the previous month.

June also saw Kabu losing revenues from acceptance fees. In May of this year, the firm made ¥791 million ($7.04 million) in revenue from acceptance fees. That number decreased to ¥739 million ($6.58 million) in June, representing an approximately 7 percent month-on-month decline that matches the broker’s commission-based revenue losses.

Kabu’s performance in June means it has slid back down to almost the same revenue levels it saw in April. In the first quarter of this year, the firm saw a burst of trading activity as investor confidence increased across the world.

That confidence did not last, and in April the firm saw its net operating revenue decline by approximately a quarter when compared to January. Last month’s results suggest investors still haven’t regained their confidence as Kabu’s revenues continue to hover around the same level as in April.

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