Monex Group Posts 457% Gain in Q1 Profits, Crypto Business Dominated

Out of the total ¥11.1 billion in pre-tax profits, ¥9 billion was generated by the crypto exchange, Coincheck.

Monex Group, which operates several Japanese brokerages and a cryptocurrency exchange, published its financials for the first quarter of the ongoing financial year, the three months between April 2021 and June 2021. The figures show a massive jump in overall jump in all key metrics.

According to the official numbers, the consolidated group revenue came in at more than ¥27.32 billion, which almost doubled year-over-year from the previous year’s similar quarter with ¥14.3 billion. Out of the total, ¥27 billion was generated directly from operations.

Despite the astronomical revenue surge, the company kept its expenses in check. The quarterly expense remained ¥16.2 billion, compared to the previous year’s ¥12.3 billion.

Additionally, the profits of the group skyrocketed with a pre-tax amount of ¥11.1 billion that went down to ¥7.28 billion after taxes. These numbers were only ¥1.99 billion and ¥1.41 billion, respectively, last year. Further, the basic earnings per share jumped to ¥28.18 from ¥5.57.

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Crypto Ruled

Monex categorizes its business usually in five segments: Japan, US, crypto assets, Asia-Pacific and Investment. Surprisingly, the profits from the crypto segment dwarfed all other businesses with a total profit of ¥9 billion, resulting from the termination of payout to former shareholders.

Monex dived into the crypto industry with its acquisition of crypto exchange Coincheck, which was struggling after a massive security breach, but it is now flourishing. Moreover, the Group pointed out that crypto trading volume on Coincheck remained high in the quarter due to the market volatility. Also, it detailed that revenue dependence on Bitcoin trading declined as altcoin‘s revenue contribution increased. Only 12 percent of Coincheck revenue was generated from Bitcoin trading.

“Coincheck focuses on expanding the number of supported coins and offers the highest number of cryptocurrencies for trading among Japanese crypto-asset exchanges,” the Japanese Group noted.

Meanwhile, brokerage businesses from Japan brought in ¥2.1 billion in revenue, while the US and Asia-Pacific segments generated ¥0.2 billion and ¥0.1 billion, respectively.

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