Kabu Revenues Return to Normal After Anomalous October

Revenues declined in October but were more in line with the rest of the year's results.

Retail trading firm Kabu released its financial results for November of this year on Tuesday. Though the Japanese broker saw a substantial month on month decline in revenue, its results were very much in line with the rest of the year thus far.

Net operating revenue, when compared to October, declined to ¥1.51 billion ($13.38 million) in November. That was an almost 15 percent decrease on the prior month’s ¥1.77 billion ($15.66 million).

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Kabu reported commissions from its brokerage activity as ¥592 million ($5.24 million). That was a ¥147 million ($1.30 million) decline from October when the firm reported total revenue from commissions of ¥739 million ($6.54 million).

Kabu – Splitting Decline Equally

Revenue reductions were spread fairly evenly across the broker’s different products. Stock commissions declined by ¥58 million ($580,000), from ¥346 million ($3.06 million) to ¥288 million ($2.55 million), and futures/options commissions by ¥50 million ($440,000), from ¥125 million ($1.11 million) to ¥75 million ($660,000).

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Acceptance fees were also down massively for the firm when compared to October. For November, the firm reported total acceptance fees of ¥717 million ($6.34 million). That was a 21.5 percent decrease from October when the firm reported revenue of ¥922 million ($8.16 million).

All of this is not as catastrophic as it seems. Kabu’s financial results for November were much in line with the rest of year. In fact, October was an anomalously successful month for the broker – as opposed to November having been a bad month.

For instance, the average net revenue for the four months prior to November was ¥1.54 billion ($13.62 million). Similarly, for the same four-month period, brokerage commissions averaged ¥582 million ($5.15 million). As you can see above, Kabu reported commissions of ¥592 million ($5.24 million) in November.



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